Guest:Mark W. YuskoChief Executive Officer and Chief Investment Officer, Morgan Creek Capital Management & Managing Partner, Morgan Creek Digital AssetsMark Yusko is the Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management. He is also the Managing Partner of Morgan Creek Digital Assets. Morgan Creek Capital Management was founded in 2004 and currently manages close to $2 billion in discretionary and non-discretionary assets. Prior to founding Morgan Creek, Mr. Yusko was CIO and Founder of UNC Management Company (UNCMC), the Endowment investment office for the University of North Carolina at Chapel Hill. Before that, he was Senior Investment Director for the University of Notre Dame Investment Office.Mr. Yusko has been at the forefront of institutional investing throughout his career. An early investor in alternative asset classes at Notre Dame, he brought the EndowmentModel of investing to UNC, which contributed to significant performance gains for theEndowment. The Endowment Model is the cornerstone philosophy of Morgan Creek, as is the mandate to Invest in Innovation. Mr. Yusko is again at the forefront of investing through Morgan Creek Digital Assets, which was formed in 2018. Morgan Creek Digital is an early stage investor in blockchain technology, digital currency and digital assets through the firm’s Venture Capital and Digital Asset Index Fund.Mr. Yusko received a BA with Honors from the University of Notre Dame and an MBA in Accounting and Finance from the University of Chicago.Hosted By:Austin WillsonMichael O'ConnorBZ: welcome back to another episode of the long-run show. This is your host, Austin Willson, along with Mike OConnor. And today we are going to be having another guest on our show. We have Mark Yusko from Morgan Creek Capital. He's actually the founder and CIO of Morgan Creek capital and the chief managing partner of Morgan Creek digital.Hopefully I got that right, Mark. And we're going to be good. We're going to be talking about we're gonna be talking about a lot of different things today. Spanning many different aspects. Obviously, mark, you have a lot of experience investing money and allocating capital and also a lot of experience just with thinking about large long run issues which is the name of the show.M: One of the things that I really don't like is everything is focused on short term and social media. And that just the explosion of content has made it even shorter and shorter. And really, if you think about investing, the art of investing, it really is about the longterm. And it's nice. You're nice to say I have a lot of experience. That's just a very nice way of saying I'm old and I am and that's actually a good thing because it means you survived all the mistakes that you made when you were young. But importantly it goes to. My whole career has been around. Long-term thinking, I a series of happy accidents. I didn't plan to be an investment guy. I planned to be an architect. And then I tried pre-med and none of those things really fit. But I went to work for an insurance company out of business school and the guy who was doing investments retired. And so I was now the investment guy. And what I found is it was the perfect thing for me as a science guy. And science is all about format hypothesis, forming experiment, gathering data, testing the hypothesis, and then deciding if it's right or wrong. And that's exactly what you do in investing, right? You come up with this form an experiment.You, you make exposure and then you test it. You gather the data and the market tells you whether you're right or wrong. And part of the. my aha moment over my career was that time arbitrage. So long run thinking, right? The title of your show is the ultimate win in investing. If you have a long time preference, if you have the ability to think longer term than the average investor, you will make more money. And that's kinda cool. And you don't have to be right as often either. That's the nice thing is you don't have to always be right or prove that you're right. Which is very dangerous and investing. Yeah. So quick. Went to school. I said to be an architect or a doctor then went to business.School, came out, went into investing. And my next happy accident was I went back to my Alma Mater. I went back to Notre Dame and I got into endowment management. And what I realized was I thought investing when I worked for the bond management part of the insurance company and then an equity firm. Was that It was just about picking stocks and bonds. That's what investing does. That's what the TV tells you. You should pick stocks IBM or GM or Ford. And what I realized is those were 15% of the longterm returns. 85% of returns comes from asset allocation. The big picture allocation of capital across stocks, bonds, currencies, commodities within stocks. Do I go international? Do I go domestic? Do I go technology? Do I go healthcare? And those big asset allocation ...
