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Capacity Constrained by Design: The 25-Year-Old Building Niche Multi-Manager Hedge Fund Platforms | Zach Levitt
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.
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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?
Published on 6 months, 2 weeks ago