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Capacity Constrained by Design: The 25-Year-Old Building Niche Multi-Manager Hedge Fund Platforms | Zach Levitt
Manage episode 488304487 series 3627237
Zach Levitt, CIO and Founder of Sixth Turn Capital and Opus One Asset Management joins Other People’s Money to discuss how he is standing up multi-manager platforms at just 25 years old by focusing on niche capacity constrained managers. Levitt discusses the benefits of combining uncorrelated capacity constrained strategies in a multi-manager platform, his unconventional path to founding a multi-manager platform, how mentorship has helped accelerate his growth, and how he goes about attracting talented investors to his platform.
Follow Zach on X: https://x.com/derivative_bro
Follow Max on X: https://x.com/maxwiethe
Follow Other People’s Money on:
Apple Podcast https://bit.ly/4e7QJ1M
Spotify https://bit.ly/3Yhaazi
YouTube https://bit.ly/3C63VXR
Timestamps
00:00 Intro
00:48 Skipping the Analyst Track and Founding a Hedge Fund at 25
07:14 Many Great Track Records Indicate Nefarious Information Was Traded On
09:42 What Does a Good Capacity Constrained Manager Look Like?
13:38 What Level of Correlation is "Uncorrelated"
18:20 What Level of Capacity is "Capacity Constrained"?
21:30 Mentorship Through Podcasts & Cold Outreach
26:13 Convincing Managers To Join Your Platform as a 25 Year Old
28:46 Investor Interest in SMAs vs Commingled Funds
35:25 Battling Startup Costs
39:06 Selling Talented Investors on Your Success Story
43:39 Risk Management and Cutting Portfolio Managers
47:38 Marketing "Hypothetical" Track Records
52:32 Next Stages of Growth
54:20 Assessing the Capacity Limits
57:17 Can PA Traders Become PMs?
121 episodes
Manage episode 488304487 series 3627237
Zach Levitt, CIO and Founder of Sixth Turn Capital and Opus One Asset Management joins Other People’s Money to discuss how he is standing up multi-manager platforms at just 25 years old by focusing on niche capacity constrained managers. Levitt discusses the benefits of combining uncorrelated capacity constrained strategies in a multi-manager platform, his unconventional path to founding a multi-manager platform, how mentorship has helped accelerate his growth, and how he goes about attracting talented investors to his platform.
Follow Zach on X: https://x.com/derivative_bro
Follow Max on X: https://x.com/maxwiethe
Follow Other People’s Money on:
Apple Podcast https://bit.ly/4e7QJ1M
Spotify https://bit.ly/3Yhaazi
YouTube https://bit.ly/3C63VXR
Timestamps
00:00 Intro
00:48 Skipping the Analyst Track and Founding a Hedge Fund at 25
07:14 Many Great Track Records Indicate Nefarious Information Was Traded On
09:42 What Does a Good Capacity Constrained Manager Look Like?
13:38 What Level of Correlation is "Uncorrelated"
18:20 What Level of Capacity is "Capacity Constrained"?
21:30 Mentorship Through Podcasts & Cold Outreach
26:13 Convincing Managers To Join Your Platform as a 25 Year Old
28:46 Investor Interest in SMAs vs Commingled Funds
35:25 Battling Startup Costs
39:06 Selling Talented Investors on Your Success Story
43:39 Risk Management and Cutting Portfolio Managers
47:38 Marketing "Hypothetical" Track Records
52:32 Next Stages of Growth
54:20 Assessing the Capacity Limits
57:17 Can PA Traders Become PMs?
121 episodes
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