Outperforming the S&P 500 & Growing from One-Man Shop to Multi-Manager Hedge Fund | David Orr of Militia Capital

This Other People’s Money episode is brought to you by VanEck.

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Since launching Militia Capital in 2021, David Orr has crushed the S&P 500 and is up over 500% net of fees. In fact, during this period, he’s one of few managers to have set the S&P 500 as the hurdle rate for the fund to earn performance fees. In this interview Orr discusses Militia Capital’s growth from $3m to over $160m today, the expansion of the strategy to include two additional external portfolio managers, and why he thinks most hedge fund managers have social media and compliance all wrong. He also discusses his investment philosophy and belief that most “value trap” investors and “story stock” investors don’t know the first thing about real investing.

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Timestamps

00:00 Intro

00:31 $SMH & SMHX

01:21 Militia Capital’s Growth Into a Multi-Manager

04:57 Twitter & Social Media

07:33 Marketing & 506(c) Hedge Funds

11:11 Benchmarking to the S&P 500

15:00 Comparing to Large Multi-Manager Funds

17:11 VanEck Mid-Roll

18:06 Risk Managing Other PMs & Collaboration

20:06 David’s Investing Philosophy

27:36 Investors Who Don’t Know Anything

38:51 Market timing & the Current Environment

45:40 Trading Macro

48:14 Hunting For New Portfolio Managers

51:32 David’s Favorite Accounts on Twitter

54:04 Rethinking Compliance

57:52 Outro