Capital Allocators – Inside the Institutional Investment Industry
Episode: Friends Reunion 3 – Five Allocators Riff on Investing (EP.454)
Release Date: June 30, 2025
Host: Ted Seides
Guests: Brett Barth (BBR Partners), Meredith Jenkins (Trinity Wall Street), John Harris (AIM), Casey Whalen (Lazard Family Office)

1. Introduction and Episode Overview

In this engaging third installment of the Friends Reunion series, Ted Seides reunites with four seasoned allocators—Brett Barth, Meredith Jenkins, John Harris, and Casey Whalen—for an unscripted discussion covering a broad spectrum of investment topics. Building on over two decades of shared experiences, the conversation delves into private markets, portfolio liquidity, tax strategies, public equities, the integration of AI in investment processes, and leadership dynamics within asset management teams.

Notable Quote:
Ted Seides [04:01]: "Today’s episode brings together four of my oldest friends in the allocator business for an unscripted conversation on markets, portfolios, and life."

2. Private Markets and Portfolio Liquidity

The discussion begins with an in-depth analysis of private market allocations and portfolio liquidity. Each allocator shares their current stance on private investments relative to their targets, highlighting recent trends and strategic adjustments.

• Casey Whalen [07:37]: Indicates an over-allocation to privates but maintains comfort due to strategic focus areas like small buyouts and defense tech.

• Meredith Jenkins [08:58]: Discusses holding back income from real estate exposures for leasing and capital reinvestment, adjusting their private equity target to 20-25%, and engaging in secondary sales based on valuation rather than rebalancing.

• John Harris [09:16]: Describes a customized allocation program for clients, emphasizing expected returns over market value percentages to avoid over-allocation during bubbles. Notes no recent secondary sales unless targeting specific managers.

• Brett Barth [10:02]: Reports steady increases in illiquid asset allocations without significant secondary sales, citing above-industry realizations in 2024 and 2025.

Notable Quote:
Meredith Jenkins [08:58]: "We will actively use secondary sales, both purchases and sales. And that is valuation driven purely. It's not rebalancing per se."

3. Tax Considerations for Different Investor Types

The conversation shifts to tax implications affecting investment decisions, particularly for taxable versus tax-exempt investors.

• Brett Barth [24:40]: Emphasizes the importance of tax-adjusted risk-adjusted returns, noting that illiquid assets are less favored by taxable investors due to tax inefficiencies, especially multi-manager hedge funds.

• Kasey Whalen [26:01]: Highlights the lack of tax awareness among retail investors and managers, stressing the importance of understanding tax rules like the 475 election.

• Brett Barth [27:13]: Explains the 475 election's impact on portfolio taxation, turning gains into ordinary income and complicating loss offsets.

Notable Quote:
Brett Barth [24:40]: "Everything we do is think about risk-adjusted returns. But those returns have to be tax adjusted."

4. Public Equities and Investment Strategies

The panel examines current trends in public equities, debating active versus passive management approaches amidst market uncertainties.

• John Harris [27:21]: Advocates for a conservative approach in US large-cap stocks while valuing active management in non-US markets for compelling value opportunities.

• Meredith Jenkins [28:32]: Focuses on making confident bets away from benchmarks, increasing exposure to emerging markets correlating with strong commodity demand.

• Brett Barth [33:35]: Discusses the diminishing correlation of international markets with the US, presenting diversification as a "free lunch" in portfolio construction.

Notable Quote:
John Harris [27:21]: "On the US equity side we've taken a more conservative approach... active managers today because we always say being passive, you're still active."

5. The Role of AI in Investment Processes

AI's integration into investment workflows is explored, with each allocator sharing current applications and future prospects.

• Brett Barth [39:14]: Describes early-stage AI applications focused on efficiency, such as drafting investment memos and analyzing return streams.

• Meredith Jenkins [41:04]: Expresses optimism about AI's potential while acknowledging the importance of interpersonal skills in apprenticeship-based roles.

• John Harris [42:59]: Highlights AI's role in enhancing data architecture and facilitating innovative uses of proprietary data, emphasizing the need for robust data systems.

Notable Quote:
Ted Seides [39:05]: "How are you using AI in your investment processes right now?"

6. Leadership and Team Building in Asset Management

The panel transitions to leadership strategies, reflecting on team dynamics, coaching, and adapting management styles to modern workforce expectations.

• Brett Barth [44:18]: Discusses empowering team members by giving responsibility and authority, coupled with outcome measurement and coaching for decision-making.

• Meredith Jenkins [48:35]: Stresses the importance of positive feedback and developing interpersonal skills to enhance team performance.

• Kasey Whalen [49:20]: Focuses on teaching younger team members to listen and ask the right questions, fostering a culture of curiosity and thoughtful engagement.

Notable Quote:
Meredith Jenkins [48:35]: "I've found it is much more effective to ask questions so they answer them... helping them own it."

7. Closing Insights and Future Topics

As the conversation winds down, the allocators share personal updates and discuss upcoming topics for future episodes, hinting at deeper dives into geopolitical impacts and evolving market dynamics.

• Brett Barth [54:20]: Raises concerns about the future of the traditional 60/40 portfolio split amidst rising interest rates and the dominance of the US dollar.

• Meredith Jenkins [56:34]: Reflects on the necessity of not becoming complacent with portfolio allocations and remaining adaptable.

• Kasey Whalen [59:10]: Mentions upcoming discussions on geopolitical issues, such as Middle Eastern developments and their global impact.

Notable Quote:
Meredith Jenkins [56:34]: "I hope that [the 60/40 split] continues to serve all of us well and we don't just set it and walk away and think that 60/40 is just what it's going to be forever."

8. Favorite Resources and Weekend Activities

In a light-hearted finale, the panel shares their favorite newsletters and weekend pastimes, reinforcing the camaraderie among the group.

Notable Quotes:
Brett Barth [57:11]: "Capital Allocators Weekly."
Kasey Whalen [58:44]: "We're just trying to enjoy as much time with [my son] when he's willing to talk to me."

Conclusion

This episode of Capital Allocators offers a rich tapestry of insights from leading institutional investors, blending strategic investment discussions with personal anecdotes. From navigating the complexities of private markets and tax strategies to embracing AI and fostering effective leadership, the conversation provides valuable takeaways for both seasoned professionals and aspiring allocators keen on understanding the multifaceted world of capital allocation.

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