Joe Milam

New or smaller VC, PE or HF manager? AUM less than $50 million? Great Performance? Trying to raise assets? Struggling and failing?   Sounds all too familiar: It’s due to poor or non-existent marketing Let’s get real about raising assets for “sub-institutional” managers, those with AUM between $0 and $50 million. IT’S HARD AND A STRUGGLE.   Raising assets in a crowded, hyper-competitive, complex and complicated market from investors that are risk averse, stringently selective and idiosyncratically demanding is more challenging and difficult than most new and sub-institutional managers understand. The fact is the majority of sub-institutional managers fail to get AUM beyond personal capital long with small amounts from family and friends even when they have exceptional performance. Plainly speaking: There is a lot of BS, hype, propaganda and completely wrong information about marketing and fundraising for small managers with AUM less than $50 million Since 2011, Johnson & Company has specialized in meeting the marketing challenges for "sub-institutional" managers. 25+ years experience, expertise and skill uniquely equips a new or smaller manager with the FACTS and proven structured, disciplined and focused PROCESS supported by independent high-integrity data and research, accurate information, objective insight, expert instruction and frontline intelligence that optimizes marketing process execution to maximize the success, efficiency, economy, expedience and effectiveness of raising assets. If you’re a new or smaller manager, with AUM less than $50 million struggling and failing to raise assets, first get the facts: https://johnsn.com/facts If after your review of the “FACTS”, you’d like a candid, no-nonsense conversation about marketing and raising assets, contact me, I welcome the opportunity. [email protected]

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If you think portfolio risk management is just about diversification, think again. This article sheds light on some surprising strategies that challenge common perceptions. Here are some thought-provoking takeaways: - Did you know that reducing the number of investments in a portfolio can sometimes actually decrease risks? It's all about strategic selection. - Contrary to popular belief, actively managing risk doesn't necessarily mean more frequent trading. In fact, a hands-off approach can be a smart move. - One of the key points discussed is the importance of understanding the correlation between investments, a factor often overlooked in risk management strategies. - Asymmetric risk and the role it plays in portfolio management is explored, offering a fresh perspective on balancing risk and return. - Ever considered tail risk hedging? This article dives into this lesser-known strategy that can enhance risk management effectiveness. Share your thoughts and feelings on these unconventional risk management strategies. https://lnkd.in/ecgSpH93

My latest Substack post analyzes $XOM once again catching $TSLA in terms of market cap. Last 5 qtrs: $XOM returned ~$40bb to shareholders via divvies, buybacks. $TSLA: $0.00 That is what really matters. But the key to investing is the second derivative, and as EV sales slow (good for demand for oil, obvs, and for $XOM) I fail to see the Silver Bullet for $TSLA. Why? Because Elon let his product line get old. No amount of robotaxi/FSD necromancy is going to change that. Trade accordingly. Excelsior! --Jim

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I'm looking forward to Opalesque's workshop next week where I will be discussing how to maximize results from cap intro and webinar events. Session 1: Thursday Aug. 22nd 11 am ET 1. Don A. Steinbrugge, CFA: Maximizing results from cap intro and webinar events 2. Chris Addy FCA CFA: How not to fail at operational due diligence 3. Matthias Knab: Getting visibility for your firm & strategy in a crowded market Session 2: Thursday Aug. 29th 11 am ET 4. Rebecca Meijlink: Succeeding in cross-border and cross-culture asset raising 5. Paul Das: Institutionalizing your firm with painless IT systems and processes 6. Linus Nilsson: Database marketing & how to pass allocator screens. Register for the free workshop here: https://lnkd.in/dPQtnsqu

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A thoughtful look at a timely topic in our current valuation and debt cycle.

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NOW AVAILABLE! NEW PRIMARY RESEARCH | The latest results of the 2024 Hedge Fund survey are in and you can access the complimentary research report now! This "Dynamo Frontline Insight Report," co-produced with dakota and ProFundCom, reveals how hedge funds are gearing up for significant changes amidst geopolitical conflicts and economic recessions. READ ALL THE FINDINGS TODAY. #SurveyResults #HedgeFund #PrimaryResearch #ALTSresearch #alternativeinvestments #fintechtrends #DynamoFrontlineInsight

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A rule of thumb for investment research reports says that if the title is a question, the correct answer is almost invariably "𝗡𝗼". (*) But in this specific case, I’m inclined to say that “esoteric” asset classes can be interesting diversifiers for a multi factor portfolio of risk premia (to be included in the illiquid bucket). “𝗔𝗿𝗲 𝗘𝘀𝗼𝘁𝗲𝗿𝗶𝗰 𝗔𝘀𝘀𝗲𝘁 𝗖𝗹𝗮𝘀𝘀𝗲𝘀 𝘁𝗵𝗲 𝗡𝗲𝘄 𝗛𝗲𝗱𝗴𝗲𝘀? 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝗮𝗿𝗲 𝗲𝘅𝗽𝗮𝗻𝗱𝗶𝗻𝗴 𝗶𝗻 𝗻𝗶𝗰𝗵𝗲 𝗮𝘀𝘀𝗲𝘁 𝗰𝗹𝗮𝘀𝘀𝗲𝘀, 𝗳𝗿𝗼𝗺 𝘄𝗵𝗶𝘀𝗸𝗲𝘆 𝘁𝗼 𝗮𝗿𝘁 𝘁𝗼 𝗶𝗻𝘁𝗲𝗹𝗹𝗲𝗰𝘁𝘂𝗮𝗹 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝘆.” https://lnkd.in/gvdk4G8q (*) Examples: "Will the Fed get inflation under control?" "Is investing in crypto exchanges a good idea?" “Is this the end of the world and how to trade it?”

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Time for LUV...finally! One of the finest US brands...extremely loyal customers, great pilots, flight attendants, mechanics and high market share in some of the fastest growing urban demos in Texas, Florida, and the Southwest, LUV has woefully underperformed. Its Board and Senior Management have failed their customers, employees, investors, retirees, systematically risking prized brand value and loyalty. Worse, they have blamed everyone but themselves. Not what Herb would do! Elliott Management is on the right track. This is one of the world's best consumer brands and it is time to get the LUV back. Wheels Up and Giddy Up! FD: LUV is one of our largest positions. #texas #privateequity #venturecapital #hbs #stanford https://lnkd.in/dANDb8rU https://lnkd.in/dANDb8rU

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The day after: with election uncertainty behind us, investors will focus on future clarity on policy priorities and implementation vs. what was proposed. 5 quick takeaways from me, David Kelly and Stephanie Aliaga: 1. A Republican controlled Congress increases the potential for significant policy changes, including tax cuts, deregulation and higher tariffs. The size of the Republican majority in both chambers will be key, as will Trump’s own priorities once in office. 2. U.S. equities remain supported, particularly on the back of robust growth and broadening earnings. However, risks around higher long-end yields and tariff implications don’t seem to be reflected in market prices and could generate volatility ahead. 3. At times, policy and market returns can take diverging directions. The performance of the Energy Sector and Clean Energy under the Trump and Biden administrations are a great example (see chart below). There's more to stock returns than politics and policy - macro context, global commodity prices, interest rates, risk appetite, and starting valuations matter more over a longer stretch of time. 4. Bond yields likely to remain volatile and elevated on the back of fiscal concerns, while trade uncertainties contribute to dollar strength and FX volatility. 5. Markets can thrive under various government configurations and diversification can help balance portfolios against unknown risks. #markets #economy #election

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Lydia Tomkiw: As a regular critic of the asset management industry’s infatuation with the elixir vitae bestowed on Alternative investments, we’re naturally sympathetic to the letter’s advocacy for “a healthy alignment of interests between GPs and LPs”. However, in this instance we’re a bit mystified by the signatories’ grievance. One has to wonder, were the aggrieved unaware of the potential for a misalignment of incentives when they first allocated capital to these hedge funds (back when risk-free rates were near zero)? Were they coerced into investing in these “misaligned” vehicles against their free will? Who vetted the hedge funds (without cash hurdles) and made the recommendations? Who approved? We’re not hedge fund operators, but fairness dictates a more balanced perspective on this kerfuffle.

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Building a High-Functioning Board of Directors for Lower Middle Market Success In the lower middle market, where agility and precision drive growth, a strong and collaborative board of directors can be the ultimate game-changer. A well-constructed board isn’t just about governance—it’s about unlocking value, fostering innovation, and scaling strategically. Here are a few key principles for assembling a winning board from our experience at Rise Run Capital: 1. Strategic Alignment: Members should share a deep understanding of the company’s mission and vision, with the expertise to help navigate unique market challenges. 2. Diverse Skill Sets: Include a mix of operational, financial, and industry-specific expertise to ensure well-rounded guidance. Diverse perspectives lead to better decision-making. 3. Collaborative Culture: A board thrives on trust, open communication, and shared goals. Creating a culture where directors can challenge ideas constructively while working cohesively is critical. 4. Active Engagement: Beyond quarterly meetings, high-performing boards bring value by proactively engaging in key initiatives, mentoring leadership, and opening doors to strategic opportunities. At Rise Run Capital, we’ve seen firsthand how a high-functioning board can drive transformative outcomes for lower middle market companies. By aligning talent, fostering collaboration, and maintaining a clear focus on long-term value creation, companies can create the foundation for sustainable growth. #Leadership #BoardOfDirectors #LowerMiddleMarket #Collaboration #ValueCreation #RiseRunCapital

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Unfortunately, as human beings, we are prone to behavioral tendencies and mental shortcuts that don’t always work in our favor. When we see or hear information—especially if it comes across as alarming—we may fixate on it in counterproductive ways. For instance, how information is presented can have a bigger impact on how we feel about it than the facts themselves. This framing bias is what convinces you to see a glass as half full or half empty. In this case, seeing a 1,000-point drop in a market index might lead you to panic and sell investments, or at least feel nervous about sitting tight. It might help your emotional and fiscal well-being to remember that “big” point drop is also a much smaller 2.6% decline. So, what’s an investor to do? First, recognize the role your emotions play in processing this kind of information. When you encounter what seems like a scary statistic, ask yourself whether it’s actually that scary. Is the stat giving you all the information you need? Is it presented out of context or hiding anything? Is it being used to sensationalize a story to snag your valuable attention? If so, it may pay to be suspicious of it. Read the full article here for more. https://buff.ly/47siX5H #financialplanning #investing #Denver

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https://lnkd.in/eNMQk-Y9 Will the Fed reduce rates in September? We don't think so. Shelter costs are still running at 5% increase per year and contribute more than 1% to the overall CPI. The Federal Reserve is hoping for inflation to fall below 2% before dropping rates. Until last month, when energy costs plummeted and brought month over month CPI increase to 0%, inflation had been increasing at an annualized rate of 3% to 4%. There are no Fed meetings in August or October. Even though many experts believe there is a 75% chance for a rate cut in September, we believe it may come after the election.

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Exciting times in the investment world! U.S.-based mutual and exchange-traded funds have seen a net inflow of $172 billion this year, a remarkable turnaround after years of outflows. Investors are showing renewed confidence, moving away from cash-like products and diving back into stocks and bonds. The economy's sturdy health, strong labor markets, and supportive central banks are creating an attractive backdrop for investing. It's clear that the appetite for risk is back, with broad-based inflows across various fund categories, not just tech. How are you adjusting your investment strategies in this bullish environment? Would love to hear how you all are responding to the moment. https://lnkd.in/dC3YbEmq

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To Our Fellow Apes: AMC balance sheet adjustments just consummated provides a clear runway through 2029, given my assumption that AMC will be cash flow positive on a forward basis. AMC has $770M in cash on B/S today, so future volatility at the Box Office mitigates credit risk. It’s likely that the credit rating agencies will look at these developments favorably, so I expect AMC rating will be moved to positive in the coming months. The Box Office looks promising since last year’s strike is over, which means a backlog of future feature films are coming over the next 18 months. Inside Out 2 in the theatre's now, rivals Frozen 2 and Lion King as the highest grossing animated movie with $1.5B in sales.

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Jake Dollarhide, CEO, LONGBOW ASSET MANAGEMENT, TULSA, OKLAHOMA “It was the worst kept secret on the planet that the Fed was not going to cut in July. The Fed is going to have its day in the sun in September with a 25 or 50 basis point cut, but I would not be surprised if that is already priced into stocks. We may actually see the market down significantly the day the Fed actually cuts rates in September.” (This is not a recommendation to buy or sell any particular security.) CNBC CNBC Overtime CNBC International The Wall Street Journal The New York Times New York Post The University of Tulsa: Collins College of Business The University of Tulsa Tulsa Remote Rotary Club of Tulsa City of Tulsa Tulsa Regional Chamber Bloomberg Reuters University of Oklahoma Rotary International Oklahoma State University Oklahoma State University-Tulsa The University of Tulsa Graduate School Gathering Place Student Investment Fund The University of Tulsa Tulsa World Media Company The Oklahoman NYSE Federal Reserve Board Federal Reserve Bank of New York YMCA of Greater Tulsa YMCA of the USA (National Resource Office) World YMCA Federal Reserve Bank of Kansas City Federal Reserve Bank of Dallas Federal Reserve Bank of St. Louis ICE 36 Degrees North Tulsa Innovation Labs Friends of the Katy Trail Harwood International Lobeck Taylor Family Foundation

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Emerging alternative assets are reshaping the investment landscape Traditional alternatives like VC & PE have paved the way, now new classes like crypto & more are on the rise, collectively valued at $1 trillion, impacting over 120 million users globally! Despite their growth, the missing piece remains: infrastructure The industry lacks streamlined operations for these novel assets, prompting startups to address crucial areas like discovery, data analytics, and custody. Discovery, education, and execution are key Aggregators like Vincent and MoneyMade are making strides, set to simplify the fragmented alternatives market for investors, providing a consolidated investing experience. Data accuracy and normalization are crucial Comparable to Morningstar in the mutual funds era, a standardized approach to evaluating these assets is essential for scalability and institutional adoption, hinging on reliable data sources. Actively managed funds will drive long-term growth With players like Grayscale and Galaxy already capturing significant AUM, this fee-rich category is poised for more entrants with diverse strategies, shaping the future of alternative investments. Custody, clearing, and settlement are the unsung heroes Ensuring asset security and seamless transactions is vital, yet the current landscape lacks the mature infrastructure seen in traditional markets, presenting opportunities for innovation and consolidation. Startups have a prime opportunity As traditional and emerging alternative assets expand, the call for a robust infrastructure is louder than ever. The sector is ripe for innovation and investment, inviting bold players to shape the future of alternative investments. https://lnkd.in/eJAVrNhD

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