“This is 21 Jump Street. Try to fit in.”
That is the advice—make like an undercover cop in college—I
get from Komson Silapachai, investment manager at Teacher Retirement System of
Texas, as we walk into my first class since graduating two and a half years
ago. Too late: My grown-up pants and audio recorder give me away.
The course: Titans of Investing at Texas A&M
University’s Mays Business School. The lesson: “The rise of the energy complex
and transformative business practices.” The professor: Britt Harris, Texas
Teachers CIO and most certainly a titan of investing.
So what would college students know about energy
investing and why would they even be interested?
Only five minutes into the class—packed with 19
students, five alumni, and a professional videographer—and I’m proven wrong,
wrong, wrong. One class-wide “Howdy” and an opening piano act later, the Aggies
get deep in the weeds of Fed Chair Janet Yellen’s views on interest rates and
emerging markets’ October currency rally. Their slides would please a Goldman
managing director; Silapachai and I stare at each other in awe. (In college, my
understanding of currency was the $4 in my wallet.) We’re taken through the
Kremlin’s response to the Ukraine bailout and demographic implications of China
revoking the one-child policy, only to land on the philosophical question: “How
much is enough?”
Art by Kyle T WeberThis is Britt
Harris’ class, after all. After quoting British philosopher Bertrand Russell,
the Texas Teachers CIO alights the podium for a lesson on his five treasured
F’s: Faith, family, friends, fitness, and finance. “I’ve had the fortune to
make more money than expected,” Harris begins. CIO’s 2013
Lifetime Achievement honoree spent much of his career in corporate pensions,
had a brief stint at Bridgewater Associates, and is now eight years into his
tenure at Texas Teachers.
“How much is enough? Money is a wonderful servant,
but a ruthless master,” he cautions. “When I asked other wealthy people how
much was ‘enough,’ they all looked like deer in headlights. They said, ‘It must
be more than what I have now. I feel like I have to make more.’”
That was a
tipping point for Harris. When he joined Bridgewater in 2004, he felt he had
reached the end of his professional Act I, and was entering the second. His
life was no longer about succeeding. Rather, lasting significance was the goal.
This realization ushered a move back to Texas, his home state, and to A&M,
his alma mater.
“I didn’t want
to teach a class that already existed,” Harris says. “This class is about
investing, but also a lot about wisdom. I want these students to become fully
engaged humans when they go out into their professional fields. Even our
selection process takes that into account. To become a Titan, students must
have the potential to become successful early on in their careers, be likely to
use that success to do something good, be an interesting person, and like to
eat.”
Titans delve
into the nitty-gritty of finance, investing, and business—What is a hedge fund?
How has horizontal drilling changed oil markets over the last decade?—but also
hear about life as an analyst on the hallowed floors of JP Morgan and Goldman
Sachs. Younger alumni return as guest speakers. They too offer guidance,
advising current Titans to “be deep learners, and manage your expectations. You
will be working 14- or 15-hour days, mainly to make your boss look good. But
always think critically about your projects. You should be prepared to have an
opinion, in the one-in-a-million chance that your boss asks you for it.”
Legends such as Bridgewater’s Co-CIO Bob Prince and Oaktree Capital’s
Co-Founder Howard Marks have also visited College Station to impart wisdom.
One decade and
300 Titans later, the program is thriving. Titan graduates can be found at
private equity firms (KKR, Blackstone), consulting firms (Bain, Deloitte),
investment banks (JP Morgan, Barclays), and businesses all over the world.
Harris recruits interns and investment staff for Texas Teachers from Titans.
(For instance, my host Komson Silapachai was Titans III). Harris’ two sons
belonged to Titans Classes XI and VI. “We’re not Harvard,” the professor
acknowledges. “A&M didn’t always have a strong connection to finance. But
now, I’m proud to say Titans have made it into some of the most exclusive
institutions.”
The formal
section of the class winds down after Harris’ lesson on the differing levels of
knowledge (simplicity, complexity, despair, and arrogance). Next on the Titan
agenda: Fajitas at the CIO’s house on the edge of campus. Sitting around the
fire pit outside, Harris banters about oil, the next Aggies football game, and
an upcoming Titans reunion dinner in Houston. It’s clear he’s not the only
investing heavyweight warming by the flames—just the most experienced.
“You can tell this is what
makes him happy,” Silapachai reflects. “Britt has 300 protégés that he
sincerely cares about. He’s building the next generation of investors from the
ground up.” Part guidance counselor, part CIO, part pastor: Britt Harris has
found his second act.