E12: Jamie Rhode on Why 95% of LPs Can Only Achieve a 10% IRR when the Mean Return is 50% IRR | Why High Ownership % is Overrated | Investing into First Time Fund Managers

Jamie Rhode, Principal at Verdis Investment Management, sits down with David Weisburd to discuss data-driven investing, compounding returns, Jamie's investing philosophy, and more. We're proudly sponsored by AngelList, visit https://www.angellist.com/tlp if you’re ready to level up your startup or fund.

The Limited Partner podcast is part of the Turpentine podcast network. Learn more: www.turpentine.co

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X / Twitter:

@durationFX (Jamie)

@dweisburd (David)

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LINKS:

Burgiss data https://www.burgiss.com/

Verdis Invesment Management https://www.verdisinvestment.com/

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SPONSOR: AngelList

The Limited Partner Podcast is proudly sponsored by AngelList.

-If you’re in private markets, you’ll love AngelList’s new suite of software products.

-For private companies, thousands of startups from $4M to $4B in valuation have switched to AngelList for cap table management. It’s a modern, intelligent, equity management platform that offers equity issuance, employee stock plan management, 409A valuations, and more.

If you’re a founder or investor, you’ll know AngelList builds software that powers the startup economy. If you’re ready to level-up your startup or fund with AngelList, visit https://www.angellist.com/tlp to get started.

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Questions or topics you want us to discuss on The Limited Partner podcast? Email us at LPShow@turpentine.co

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TIMESTAMPS:

(00:00) Episode Preview

(01:07) Jamie’s data driven approach

(02:20) Using duration as an advantage

(04:37) Jamie’s first principles approach to VC portfolio construction

(07:00) The mean return in venture is 4-5x greater than the median

(10:54) Jamie’s strategy and proprietary deal flow

(15:30) Sponsor: AngelList

(16:50) Comparing Jamie’s philosophy with past guests LPs Michael Kim and David Clark

(19:25) Disciplined investing

(21:20) Jamie’s red flags for GPs

(22:50) Data stack: PitchBook, CB Insights, Burgiss 

(24:00) Ideal GPs

(27:40) Compounding returns

(29:40)What percentage of venture investors are able to access a strategy that results in 25% compounding?  

(30:55) Co-investing with other LPs

(32:43) Other top tier LPs shoutouts

(34:05) Investing in life sciences

(38:00) #OpenLP movement and transparency

(40:10) Who will be the next great GPs?

(44:00) Management fees

(46:00) What Jamie would change about the industry