Episode 73
E73: John Merrill on GroveStreet’s $10.5 Billion Investment Strategy
How I Invest with David Weisburd
June 25, 202436m 12s
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Show Notes
John Merrill, Partner at GroveStreet sits down with David Weisburd to discuss GroveStreet’s $10.5B SMA model. In addition, they talk about the keys to building long-term SMA relationships, a highly selective set of criteria for managers and reasons why GP’s should prefer rigorous, discerning LPs vs. fast-followers.
(0:00) Introduction and background of John Merrill and Grove Street
(1:34) Benefits of separately managed accounts (SMAs) for institutional investors
(3:39) The problem Grove Street is solving for clients
(5:03) Importance of alignment in asset management
(6:30) Investment process and criteria for selecting funds
(10:13) Client management and characteristics Grove Street looks for in clients
(13:25) Benefits of a boutique client model
(16:17) Studying under David Swenson and his impact
(20:14) The give and take in LP-GP relationships
(22:27) Importance of landing an anchor investor for new funds
(24:25) Characteristics of a good partnership between LPs and GPs
(29:43) Characteristics of a top limited partner
(33:17) Global investment insights and local biases
(35:09) Final thoughts and closing remarks