E97: How Institutional Investors Access Crypto

09/24/24 • 33 min

Drew Myers, Co-Founder and Managing Partner at CrossLayer Capital sits down with David Weisburd to discuss the key to small funds thriving in pre-seed investing, how time diversification tame crypto volatility, and identifying persistent top quartile crypto funds.

The 10X Capital Podcast is part of the Turpentine podcast network. Learn more: turpentine.co

–

X / Twitter: @dweisburd (David Weisburd)

LinkedIn: CrossLayer Capital: https://www.linkedin.com/company/crosslayer-capital/ Drew Myers: https://www.linkedin.com/in/drew-myers-8764aa22/ David Weisburd: https://www.linkedin.com/in/dweisburd/

–

Links: CrossLayer Capital: https://www.crosslayercap.com/

–

Questions or topics you want us to discuss on The 10X Capital Podcast? Email us at [email protected]

TIMESTAMPS:

(0:00) Episode Preview (2:01) Investment strategy: emerging vs. established managers and fund structures (4:20) Identifying alpha in venture and liquid crypto investments, comparison to biotech (6:12) Diligence and alignment in GP-LP relationships; lessons from Makena Capital (10:37) Approach to VC China strategy and parallels in crypto; early market mistakes (16:01) Divergent interests between GPs and LPs; systematic frameworks and investment theses (18:27) Portfolio construction and diversity with idiosyncratic bets (22:12) Pre-seed investments and their impact on return profiles (24:11) Managing risk in volatile markets and differentiating managers (27:26) Persistence of top quartile returns and market cycle impacts (29:30) Advice for institutional LPs entering crypto; regrets and lessons at Crosslayer (33:33) Closing remarks

The 10X Capital Podcast is part of the Turpentine podcast network. Learn more: turpentine.co

–

X / Twitter: @dweisburd (David Weisburd)

LinkedIn: CrossLayer Capital: https://www.linkedin.com/company/crosslayer-capital/ Drew Myers: https://www.linkedin.com/in/drew-myers-8764aa22/ David Weisburd: https://www.linkedin.com/in/dweisburd/

–

Links: CrossLayer Capital: https://www.crosslayercap.com/

–

Questions or topics you want us to discuss on The 10X Capital Podcast? Email us at [email protected]

TIMESTAMPS:

Previous Episode

E96: “100% Alpha Portfolio” - Levy Family Partners

Michael Wallach, Vice President of Investment at Levy Family Partners sits down with David Weisburd to discuss the unexpected challenges of working at a family office, how to leverage expert insights to drive high-impact investments, and critical mistakes LPs should always avoid.

The 10X Capital Podcast is part of the Turpentine podcast network. Learn more: turpentine.co

–

X / Twitter: @dweisburd (David Weisburd)

LinkedIn: Michael Wallach: https://www.linkedin.com/in/mike-wallach-8b75291/ David Weisburd: https://www.linkedin.com/in/dweisburd/

Questions or topics you want us to discuss on The 10X Capital Podcast? Email us at [email protected]

TIMESTAMPS:

(0:00) Episode Preview (1:51) Investment strategy and differentiation in alpha/beta strategies (3:34) Sourcing and diligence process for direct deals (6:31) Managing portfolio drawdowns and liquidity (8:12) Importance of data room contents for decision making (9:45) Emphasis on reputation in investment decisions (10:53) Asset class allocation and planning (11:47) Key takeaways from experiences at Levy Family Partners (14:21) Pain points for GPs and LPs' leverage points (15:57) Unique advantages and advice for family office operations (17:25) Closing remarks

Next Episode

E98: How the $3.5 Billion University of Rochester Endowment Invests

Rob Rahbari, Senior Investment Officer and Assistant Treasurer at University of Rochester sits down with David Weisburd to discuss the hidden potential that diverse fund managers offer, the missing ingredient in a successful investment strategy, and what role will diversity, equity, and inclusion play in the future of institutional investing.

The 10X Capital Podcast is part of the Turpentine podcast network. Learn more: turpentine.co

–

X / Twitter: @dweisburd (David Weisburd) @UofR (University of Rochester) @RobRahbari (Rob Rahbari)

LinkedIn: University of Rochester: https://www.linkedin.com/school/university-of-rochester/ Rob Rahbari: https://www.linkedin.com/in/robrahbari/ David Weisburd: https://www.linkedin.com/in/dweisburd/

–

Links: University of Rochester: https://www.rochester.edu/

–

Questions or topics you want us to discuss on The 10X Capital Podcast? Email us at [email protected]

TIMESTAMPS:

(0:00) Episode Preview (3:17) Portfolio construction and generalist strategy pros and cons (6:27) Macro factors and their impact on investments (7:37) Real assets, fixed income, and real estate strategies (8:52) Venture portfolio insights and GP relationship management (11:21) Selection criteria for new managers and common pitfalls (13:34) Addressing bias and complexity in investment strategies (15:40) Doug Phillips' unique approach to investing (18:13) Investing at the University of Rochester and IADEI initiative (20:51) Embracing market cycles and diverse managers (22:27) Closing remarks