Bobby Jain – Multi-Strategy Hedge Fund First Principles at Jain Global

**Bobby Jain** (0:00)
The multi-strategy firms, over time, have more and more employee money, and less and less available to investors. People have been giving back capital on it. And I said, this is an opportunity to create, from first principles, a multi-strategy from scratch, which even the market leaders not necessarily did. They evolved to that over time, and they did a great job, but create one from scratch. The second big trend in the world is the financialization of everything. Everything's becoming a tradable asset. The amount of people that are in the middle of that, whether it's the prop shops, the multi-strategy firms, the banks, there's not that many intermediaries for this thing. So I said, here's an opportunity I have to start one from scratch. I'm still young enough. Obviously, there's gigantic barriers to entry in this business, but I felt like Millenium was in a great place, extremely talented people inside. So I said, this is a time when I can get off and do it on my own.

**Ted Seides** (0:54)
I'm Ted Seides, and this is Capital Allocators.
My guest on today's show is Bobby Jain, the CEO and CIO of Jain Global, a global multi-strategy hedge fund he launched last year that manages about $6 billion with over 350 employees. Bobby's storied Wall Street career includes spending seven years as the co-CIO of Millenium and 20 at Credit Suisse in a range of leadership roles spanning proprietary trading, derivatives and asset management. Our conversation traces Bobby's path from growing up as the son of immigrants in Queens to the trading floors of O'Connor and Credit Suisse, all of which shaped his thoughtful, framework-driven perspectives on markets. We explore the evolution of prop trading and the migration of risk-taking from banks to hedge funds, proprietary trading firms and private credit. We then discuss Bobby's ambitious launch, including the principles guiding its design, scale and diversification out of the gate, talent strategy, risk management, portfolio construction, and the many trade-offs that create the different cultures and complexions of multi-manager hedge funds. We close with Bobby's application of financial innovation to helping others. Before we get going, Capital Allocators seems to reach a sufficiently large audience to create all kinds of serendipity. Here's my 16-year-old son, Eric, to share an example.

**Eric Seides** (2:27)
I was hanging out with my friend and his dad was super mad at us for being so loud. He told us we should quiet down and learn something. He then asked me, do you listen to any podcast? I said no, but I probably should given who my dad is. He then goes, here's one. The guy asked a lot of really cool, important questions. The podcast he was holding on his phone, none other than Capital Allocators. I sighed in annoyance because this has happened before. I asked for his phone and started playing the Ben Hunt episode from June 2024 If you don't remember, that's the last time I did the spread the word. The sound of my voice made his jaw fall completely to the floor. Even after showing off to my friend's dad, I'm still not going to listen to this podcast, but you definitely should.
Apparently, all the rich, smart dads are doing it. If you want to be rich, you should too. If you already are rich, don't worry. Tell your poor friends about this podcast. They're going to get a lot out of it. Thank you so much for spreading the word.

**Ted Seides** (3:30)
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