David Morehead is one of the most respected CIOs in the endowment fund world as Chief Investment Officer at Baylor University, overseeing its $2.6BN endowment. Before joining Baylor in 2011, he was a senior portfolio manager at several Chicago hedge funds, investing across corporate securities, distressed debt and public and private energy.
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Timestamps:
00:00 – Intro
01:26 – How Baylor Invests a $2.6BN Endowment
08:01 – How Should an Endowment Build a Portfolio?
11:02 – Why Private Markets Exist to Make Money
12:38 – Big-Name VC Funds vs Emerging Managers
13:56 – Are Venture Funds Simply Too Long?
14:28 – Why a 15x Venture Return Can Be Worse Than a 3x Growth Return
15:43 – Why Velocity of Capital Matters More Than Fund Multiple
17:08 – Why Would an LP Invest in Venture at All?
18:45 – Baylor Has 2.5% of Its Endowment in Anthropic
20:48 – Why Baylor Bought the Software Crash
26:05 – Why Public Markets Can Teach You More Than Venture
27:19 – Are Public Markets Actually More Rational Than Private Markets?
29:07 – Can LPs Trust Private Market Valuations?
31:20 – Why Baylor Prefers Growth Equity to Venture
33:33 – How Much Liquidity Should an Endowment Keep?
36:13 – The Biggest Lesson From Losing Money
37:43 – How to Buy Into a Falling Market Without Going All In
47:14 – Are LP Incentives Broken?
48:11 – Is AI Making Humans Worse at Thinking?
53:07 – How Big Does a Fund Position Need to Be to Matter?
55:35 – Should VCs Stick to the Strategy They Raised On?
01:01:04 – Do LPs Really Need 3 Funds to Judge a VC?
01:03:54 – Why Huge Venture Funds Get Harder to Underwrite
01:05:15 – The Hidden Bottleneck in the AI Data Center Boom
01:09:46 – Why Baylor Is Bearish on Europe
01:11:33 – Why Private Credit Is Overhyped
01:13:41 – Why Biotech Could Be the Next Major Investment Opportunity
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