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Ned Brines is Chief of Investment Strategy at Arnel & Affiliates, a single family office in Southern California, where he runs the portfolios for both the family and its foundation. He spent six years in investment banking and more than two decades as an institutional money manager before moving into the family office world, and he serves as an independent director of a publicly traded apartment REIT.

In this episode, Ned breaks down how a multi-billion dollar family office actually builds a portfolio, and why most of what passes for diversification isn't.

⭐ This episode is brought to you by Podcast10x - https://podcast10x.com

Key topics we cover:

• Why thirty equity managers is one bet wearing thirty different labels

• What real estate is really there to do in the portfolio, and why he doesn't think it's the inflation hedge everyone claims

• How IRR gets manipulated with subscription lines, and what he does to strip it back out

• Why he caps venture funds at $150M and PE funds at $750M

• Why he holds twelve percent cash, waits for downside volatility, and once waited fourteen years to buy a stock

Links:

Connect with Ned Brines:

LinkedIn - https://www.linkedin.com/in/ned-brines/

Connect with Prashant Choubey:

LinkedIn - https://linkedin.com/in/choubeysahab

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Timestamps:

(00:00) - Preview

(03:12) - The Biggest Misconception in Portfolio Construction

(04:16) - Building a Portfolio Based on Economic Conditions

(05:43) - The Role of Real Estate in a Family Office Portfolio

(06:25) - Framework for In-sourcing vs. Outsourcing Investments

(08:47) - The Dangers of Illiquid Strategies for Retail Investors

(11:08) - How Rising Interest Rates Challenge Private Equity

(12:11) - Hedging Against Geopolitical and Interest Rate Uncertainty

(14:34) - What Specific Role Does Real Estate Play in a Portfolio?

(16:11) - How Families Without a Real Estate Background Should Invest

(19:30) - Are REITs the Best Way to Invest in Real Estate?

(20:37) - Evaluating Established vs. Emerging Fund Managers

(22:15) - Focusing on MOIC (Multiple on Invested Capital) Over IRR

(24:15) - How to Differentiate Between Two Seemingly Similar Managers

(26:08) - Why High-Conviction, Concentrated Bets Are Preferred

(29:32) - Determining the Right Amount of Cash to Hold for Opportunities

(32:40) - Managing a Single Cash Pool for Family Needs and Investments

(33:55) - Uncovering Hidden Risks in Private Markets

(37:13) - Operational Improvements with the Biggest Impact

(39:10) - Distinguishing Between Genuine Risk and Market Volatility

(41:50) - Thoughts on the AI Stock Thesis and Valuations

(47:31) - An Investment Belief That Has Changed Over the Last Decade

(50:13) - How Serving on a REIT Board Changed His View on Real Estate

(55:53) - The Future Advantages and Disadvantages for Family Offices

(01:00:43) - Start of Rapid Fire Round

(01:00:59) - Sectors and Regions of Investment

(01:03:48) - Typical Commitment Size for VC and PE Funds

(01:05:10) - Sourcing Deals: Inbound vs. Outbound

(01:07:22) - Where Listeners Can Follow Ned

#VentureCapital #FamilyOffice #PrivateEquity #Investing #AssetAllocation

FamilyOffice10x - I Can't Eat IRR - Ned Brines, Chief of Investment Strategy at Arnel & Affiliates

VC10X - Investing, Venture Capital, Asset Management, Family Office, Wealth Management

FamilyOffice10x - I Can't Eat IRR - Ned Brines, Chief of Investment Strategy at Arnel & Affiliates