Invest Like The Best
Episode 30 The Future of Asset Management
Invest Like The Best

Episode 30: The Future of Asset Management

The Future of Asset Management

Ted Seides is the Founder of Capital Allocators. Brent Beshore is the CEO and founder of adventur.es. We cover the future of hedge fund fees, the role of industry dynamics in investment decision making, and setups conducive to a true long term investing strategy.

[00:03:23] – (First question) – Ted describes structural headwinds that hedge funds face today

[00:03:34] – The future of asset management, the fee structures, and where it might be heading

[00:08:37] – What would lead to a natural tendency towards capital deployment

[00:14:57] – Is it possible to pick the best pickers?

[00:16:21] – How much was size a factor in identifying good stock pickers

[00:17:56] – Looking at edge and how the fight for the informational edge has changed over the last few decades

[00:22:24] – The signals that are starting to pop up today that will have some staying power

[00:23:57] – The future of the corporation and what impact that will have on how valuation is determined

[00:25:20] – What role industry dynamics play when making an investment decision, and why components of a core business can be attractive

[00:30:57] – Looking at the disruption in the media business

[00:33:13] – The way in which change impacts investing decisions

[00:37:51] – What are the setups that would be conducive to a true long term investing strategy

[00:40:23] – What long-held beliefs have changed for everyone over the last few years that was a surprise

[00:46:50] – Topics for books that they would explore

[00:50:56] – Exploring the idea of business hygiene

[00:50:21] – What book topic do you want to produce that doesn’t exist yet

[01:03:16] – Will businesses be purged by rising interest rates squeezing their margins

[01:10:44] – Exploring the role of intuition

[01:13:56] – Who would you trust your money with

[01:19:31] – What does retirement look like for this crew

[01:24:54] – If you had to share a book, article, or person with unique ideas, what would you share

The Future of Asset Management

Introduction

Patrick
I really underestimated the impact that this podcast would have on my life. I owe a huge thank you to everyone listening, especially to those who have shared the ones they've enjoyed most with their friends. I haven't done a single thing to "market" this show. It has been a hundred percent organic word of mouth growth. So the large audience size is thanks to you all. I deeply appreciate it. But I appreciate even more, however, is that the show's success has pushed me to be more thoughtful about what admittedly remains an informal process of searching for the most interesting people I can find that will share lessons they've learned with me and with you. Were it not for the podcast, I would never have met most of the people you hear each week. Some of those guests have become dear friends, including the two in this week's episode, Ted Seides, and Brent Beshore. Ted and I flew out to St. Louis to spend a day with Brent. While we are all passionate about investing, we've had very different careers. Ted in alternatives, hedge funds, and fund to funds, Brent in lower middle-market private equity, and my own in quantitative equities. What we share is a passion for investing in general and a deep interest in where the asset management business and profession is going. This conversation starts like most episodes, somewhat structured exploration of the investing business, but moves to be a bit more fun and informal as we work our way through a bottle or two of wine. In the latter half, we talk about how to dissect an industry, common features of good businesses within a given industry, books we'd like to write, books we wish existed, and things we've learned in our careers. We spent a long time talking about Ted's famous bet with Warren Buffet, but I've removed most of that and saved the conversation for another time. You'll hear us reference it here and there, mostly giving Ted help, but rest assured we will the entire thing in more detail at a later date. I could spend all my free time having conversations like this one and die happy. Thank you again for listening and sharing because you're doing so has allowed me to find people like Brent, Ted, and many others, and lead to friendships that have quickly become an important part of my life. For show notes, visit investorfieldguide.com/brentandted.

On Hedge Fund Fees, Edge, and Competition

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