E422: Founding CIO of Berkeley Endowment on Track Records, Contrarian Investing & First-Time Funds

Why do so many GPs misunderstand what institutional LPs actually care about? David sits down with John-Austin Saviano, an Backing & Building Challenger Investment Firms and Former Endowment CIO, argues that one of the biggest mistakes GPs make is overemphasizing track record. Great LPs care less about the headline returns than how those returns were generated. They want to understand the investment process, whether it is repeatable, and whether the people and market conditions that produced past performance still exist today. Highlights:

• Why track record is less predictive than most GPs believe.
• What LPs actually want to understand about an investment firm.
• How great allocators separate good decisions from good outcomes.
• Why being different is necessary to generate differentiated returns.
• What investors misunderstood about David Swensen’s endowment model.
• Why Fund I may actually be more knowable than Fund XIV.
• How challenger firms become the R&D of an institutional portfolio.
• The hunt, farm, and fish framework for raising institutional capital.

Guest Bio:

John-Austin Saviano is Backing & Building Challenger Investment Firms and Former Endowment CIO. Over more than 20 years as an institutional allocator, he helped launch two ten-figure endowments, served as the founding CIO of UC Berkeley’s endowment, was part of the founding investment team at the Gordon & Betty Moore Foundation, and worked on the private capital team at Cambridge Associates. Today, he draws on his experience backing dozens of challenger firms and reviewing billions of dollars of fund commitments to help investment firm founders navigate fundraising, firm building, and the transition from talented investor to enduring investment organization.

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We’d like to thank AlphaSense for sponsoring this episode!

Sponsor:

AlphaSense is the AI-powered market intelligence platform trusted by 85% of the S&P 100, helping investment professionals make faster, more confident, data-driven decisions. Built for hedge funds, asset allocators, private venture capital firms, and investment bankers, AlphaSense uses advanced AI and powerful search across premium proprietary content to surface the insights that matter most—before the market moves. Elevate your research and stay ahead of the competition. Visit https://www.alpha-sense.com/howiinvest/ to learn more.

Stay Connected with David Weisburd:

X/Twitter: @dweisburd LinkedIn: https://www.linkedin.com/in/dweisburd/ Weisburd Pierce: https://www.weisburdpierce.com/

Stay Connected with John-Austin Saviano:

LinkedIn: https://www.linkedin.com/in/john-austin-saviano/

Questions or topics you want us to discuss on How I Invest? Email us at david@weisburdcapital.com.

Disclaimer:

This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Pierce. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions.

(0:00) Why Track Record Is Overrated (8:20) Why Private Markets Got So Much Harder (18:22) What the Best Fund Managers Have in Common (25:08) The Danger of a Great Track Record (29:51) What Everyone Got Wrong About the Yale Model (36:34) Why First-Time Funds May Be Less Risky (43:18) How a Former CIO Would Build an Endowment Today (47:50) The Mistake That Kills Most GP Pitches (56:27) The Fundraising Strategy Most GPs Ignore