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

09/26/24 • 22 min

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

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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/

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

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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

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

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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/

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

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

TIMESTAMPS:

Previous Episode

E97: How Institutional Investors Access Crypto

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

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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/

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

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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

Next Episode

E99: How to Pick Top Decile Venture GP’s

Albert Azout, Managing Partner at Level Ventures sits down with David Weisburd to discuss how to spot unicorn founders early in Venture Capital, what separates great fund managers from the rest, and digging deep into the role of data in unpacking venture fund performance.

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

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X / Twitter: @dweisburd (David Weisburd) @levelvc (Level Ventures)

LinkedIn: Level Ventures: https://www.linkedin.com/company/level-ventures/ Albert Azout: https://www.linkedin.com/in/albertazout/ David Weisburd: https://www.linkedin.com/in/dweisburd/

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Links: Level Ventures: https://levelvc.com/

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

(0:00) Episode Preview (1:39) Data-driven approach to investing and predicting top-performing managers (3:20) Building social capital and early investment indicators (4:38) Follow-on investments, market timing, and macro factors (6:33) Ownership strategies and discipline in seed investments (8:13) Offensive strategy and value-add for GPs (10:18) Evolution of Level VC's value-add approach (13:16) Flywheel effect in investment networks (14:31) Learnings from Coda Capital and systematic sourcing (16:03) Recognizing great founders and contextual quality of GPs (17:07) Fund size control, co-investing, and portfolio construction (20:28) Collaboration, differentiation, and venture capital insights (22:11) Closing remarks