Alex Sacerdote – Riding S-Curves at Whale Rock

**Ted Seides** (0:01)
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**SPEAKER_2** (1:27)
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**Ted Seides** (2:55)
Hello, I'm Ted Seides, and this is Capital Allocators. This show is an open exploration of the people and process behind capital allocation. Through conversations with leaders in the money game, we learn how these holders of the keys to the kingdom allocate their time and their capital. You can join our mailing list and access premium content at capitalallocators.com.

**SPEAKER_3** (3:22)
All opinions expressed by Ted and podcast guests are solely their own opinions and do not reflect the opinion of capital allocators or their firms. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions. Clients of Capital Allocators or podcast guests may maintain positions and securities discussed on this podcast.

**Ted Seides** (3:41)
My guest on today's show is Alex Sacerdote, the founder of Whale Rock Capital Management, a technology focused investment firm that manages $8 billion across hedge fund, long only and hybrid strategies. Our conversation covers Alex's path to running Whale Rock, shaped by early exposure to the markets through his father, a long time partner at Goldman Sachs, and his formative years at Fidelity. We dive into the key lessons he learned at Fidelity, the development of his investment framework centered around S-curves, competitive advantages, and underappreciated earnings power, and the application of the framework to AI, the MAG-7, cloud computing, electronic vehicles, and blockchain technologies.
Before we get going, after eight years of being told by my friends that I have a face for podcasting, we decided to rip off the band-aid and produce video recordings. It turns out that YouTube is the fastest growing channel for listening to podcasts. Not Apple, still the biggest, and not Spotify, still the biggest among younger listeners. It's YouTube. Now I, for one, don't understand this at all. It's hard for me to imagine watching two people talk to each other, especially when so much of my listening comes when I'm on the move. But it seems that's not the trend, and the trend is your friend, at least according to Cliff Asness and others with the momentum factor strategy. So we're giving it a shot. That's despite my hesitancy, and despite quite enjoying the many times I speak to both friends and new friends who tell me it seems strange to hear me talk while seeing me at the same time. Now I'm not sure if that's a sensory thing, or if my friends were right about my face for podcasting, but either way, it seems I'll be a little more visible going forward. The irony of this is most of you hearing this already are listening, so you may be the exact wrong audience to share that we've added video. But regardless, if you do have a friend who's addicted to YouTube, please let them know we're now stimulating an additional one of the five senses. Thanks so much for spreading the word about Capital Allocators' videos now available on YouTube. Please enjoy my conversation with Alex Sacerdote. Alex, thanks so much for joining me.