The Twenty Minute VC (20VC) · Monday, September 14, 2026
David Morehead, CIO of Baylor University, discusses strategies to improve investment performance, particularly addressing the challenge of trailing in growth-led markets. He explains that over the last three to five years, they have focused on incorporating convexity into their strategy without incurring a significant theta (time decay) cost.
“And so the issue is, you know, the market's up 70% of the time. If you're going to trail to the upside, that's going to be problematic.”
“And what we've tried to do over the last, really three to five years, is we've tried to increasingly solve that with convexity.”
“And we've tried to do that in a manner such that we're actually not paying a theta bill on sort of like a normalized basis.”