NYAIR Episode 20
Perspectives From a Hedge Fund Allocator
What does it take to be a winning allocator in the world of hedge funds today? In this exclusive NY-AIR episode, Neil Waldman (Founder & Managing Member, Waldman Capital Management) reveals his rigorous approach to sourcing, selecting, and monitoring managers. Discover core beliefs, due diligence secrets, and how top allocators construct portfolios that outperform—plus candid views from a fund manager lionized by industry veterans like Lee Cooperman.
Featured Guests
Neil Waldman
Founder & Managing Member, Waldman Capital Management (WCM)
Neil Waldman is a veteran allocator and founder of Waldman Capital Management, a fund-of-hedge-funds focused on long/short equity managers with a relentless commitment to deep research, hand-picked talent, and disciplined risk controls. With over 15 years’ experience investing in “under-the-radar” managers, Neil’s partnership approach, consulting to top family offices and experience as outsourced CIO for Leon Cooperman’s family office, make him one of the most trusted evaluators of hedge fund skill and alignment in the market.
Key Insights From This Episode
Core Beliefs for Allocators
A diversified portfolio must include long/short equity hedge funds—but only the top 10–20% outperform, and picking them requires rigorous conviction and hard work.
Manager Selection: What Sets Winners Apart
Neil’s process values intellectual curiosity, a transparent and repeatable process, humility, and open acknowledgement of mistakes—a “talented athlete” mindset that can adapt through industry cycles.
Why Size and Timing Matter
Investing in managers between $100–300M AUM, before they get too large, ensures alignment, access, and exposure to the highest-growth phase of their careers.
Risk Management Non-Negotiables
Strict risk and liquidity constraints—moderate leverage, position caps, and independently verifiable NAV—protect against blowups, mispricing, and fraud.
Due Diligence Is an Ongoing, Not One-Time, Effort
Layered due diligence includes document reviews, multiple meetings, reference checks, and service provider validation. Post-investment, constant monitoring and clear exit triggers are essential.
The Fees Debate: Alignment First
Management fees should support operations, not create “dynastic wealth”—variable, scaled-down fee models and investor-friendly breakpoints are the future for genuine alignment.
Access the Full Conversation
Listen to the episode and access a custom insights deck. This is essential viewing for allocators, family offices, consultants, and managers aiming to understand the mindset and mechanics of institutional hedge fund allocation.
Soundbites Worth Saving
“No manager’s perfect, but truthfulness and transparency—especially about mistakes—matter more than a perfect record.”
— Neil Waldman
“V“Hedge fund selection isn’t about chasing performance. It’s about finding the rare manager with repeatable process and the humility to adapt.”
— Neil Waldman
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