Capacity Constrained by Design: The 25-Year-Old Building Niche Multi-Manager Hedge Fund Platforms | Zach Levitt
Zach Levitt, CIO and Founder of Sixth Turn Capital and Opus One Asset Management joins Other People’s Money to discuss how he is standing up multi-manager platforms at just 25 years old by focusing on niche capacity constrained managers. Levitt discusses the benefits of combining uncorrelated capacity constrained strategies in a multi-manager platform, his unconventional path to founding a multi-manager platform, how mentorship has helped accelerate his growth, and how he goes about attracting talented investors to his platform. Follow Zach on X: https://x.com/derivative_bro Follow Max on X: https://x.com/maxwiethe Follow Other People’s Money on: Apple Podcast https://bit.ly/4e7QJ1M Spotify https://bit.ly/3Yhaazi YouTube https://bit.ly/3C63VXR X https://x.com/opmpod Timestamps 00:00 Intro 00:48 Skipping the Analyst Track and Founding a Hedge Fund at 25 07:14 Many Great Track Records Indicate Nefarious Information Was Traded On 09:42 What Does a Good Capacity Constrained Manager Look Like? 13:38 What Level of Correlation is "Uncorrelated" 18:20 What Level of Capacity is "Capacity Constrained"? 21:30 Mentorship Through Podcasts & Cold Outreach 26:13 Convincing Managers To Join Your Platform as a 25 Year Old 28:46 Investor Interest in SMAs vs Commingled Funds 35:25 Battling Startup Costs 39:06 Selling Talented Investors on Your Success Story 43:39 Risk Management and Cutting Portfolio Managers 47:38 Marketing "Hypothetical" Track Records 52:32 Next Stages of Growth 54:20 Assessing the Capacity Limits 57:17 Can PA Traders Become PMs?