Roz Hewsenian –Helmsley Trust’s Chief of People and Process (Capital Allocators, EP.63)

Manager Evaluation

In evaluating fund managers, Roz Hewsenian emphasizes the importance of recognizing and mitigating behavioral biases. Her team is motivated by performance objectives, which helps them overcome personal biases and focus on excellence 1. Roz explains that when a manager is underperforming, they are informed of the issues to allow them to rectify the situation, thus saving the team additional work 1. She shares that her biggest mistake has been not firing managers quickly enough, highlighting the delicate balance between giving managers time to resolve issues and making timely decisions 2.

We recognize that you can have behavioral biases, but to what end? The thing about the team that is so important is that excellence is ingrained in every single individual.

--- Roz Hewsenian

Additionally, Roz looks for managers who can acknowledge their shortcomings and partner with others to balance their weaknesses, a crucial factor in her assessment process 3.

   

Governance Challenges

Navigating governance challenges at the Helmsley Trust required Roz Hewsenian to implement strategic changes over time. Initially, her authority was limited, but she focused on earning trust and gradually expanded her influence by breaking down requests into manageable parts 4. Roz's approach to investment strategy at Helmsley avoids rigid categorizations, instead embracing opportunistic investing to manage liquidity risks effectively 5.

One of the things I'm fond of saying to the team is, we'll go for the little yeses to avoid the big no.

--- Roz Hewsenian

Her governance strategy includes a co-investment policy that ensures compliance with regulations and aligns with the manager's expertise, focusing on incremental risk and cash flow positivity 4.