Capital Allocators – Inside the Institutional Investment Industry Chris Heller - Weird Alternatives at Cordillera Investment Partners (Manager Meetings, EP.28)
Mar 24, 2022
Chris Heller, Co-Founder of Cordillera Investment Partners, shares insights on investing in unique, non-correlated assets. He discusses the burgeoning market of whiskey aging and how it parallels other commodities. Heller also dives into unconventional investments like alligator farming and spectrum for 5G technology, highlighting the need for specialized knowledge. With a focus on disciplined risk management and portfolio construction, the conversation emphasizes navigating the complexities of these 'weird alternatives,' all while balancing life and family.
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Diminishing Returns in Traditional Alternatives
- Traditional alternative assets like private equity, hedge funds, and real estate have become less alternative and more correlated.
- This has led to decreased returns and less diversification, prompting Cordillera to seek truly alternative investments.
Perceived vs. Actual Risk
- Cordillera exploits the gap between perceived risk and actual risk in niche investments.
- Many investors avoid these due to perceived risk, creating opportunities for Cordillera.
Whiskey Aging Investment
- Cordillera invests in whiskey aging, capitalizing on the bourbon boom and industry fragmentation.
- They buy and age whiskey, then sell it to brands, leveraging their patient capital.