John Merrill, Partner at GroveStreet sits down with David Weisburd to discuss GroveStreet’s $10.5B SMA model. In addition, they talk about the keys to building long-term SMA relationships, a highly selective set of criteria for managers and reasons why GP’s should prefer rigorous, discerning LPs vs. fast-followers.

(0:00) Introduction and background of John Merrill and Grove Street

(1:34) Benefits of separately managed accounts (SMAs) for institutional investors

(3:39) The problem Grove Street is solving for clients

(5:03) Importance of alignment in asset management

(6:30) Investment process and criteria for selecting funds

(10:13) Client management and characteristics Grove Street looks for in clients

(13:25) Benefits of a boutique client model

(16:17) Studying under David Swenson and his impact

(20:14) The give and take in LP-GP relationships

(22:27) Importance of landing an anchor investor for new funds

(24:25) Characteristics of a good partnership between LPs and GPs

(29:43) Characteristics of a top limited partner

(33:17) Global investment insights and local biases

(35:09) Final thoughts and closing remarks