S02E15 Crown Castê: A Guide to Hedge Funds & Their Place in Financial Markets with Kojo Amoo-Gottfried

Welcome to Crown Castê, your financial literacy podcast for small businesses. We publish inspiring, insightful conversations with investors and stewards of capital.

In this episode of Crown Castê, we’re taking a journey into the world of hedge funds with Kojo Amoo-Gottfried, a seasoned hedge fund manager. Kojo shares a rare perspective—one that intertwines his expertise in capital allocation with the grit and creativity of entrepreneurship. From the trading floor to managing public debt in emerging markets, Kojo unpacks the strategies, risks, and opportunities that define his world.

We begin with Kojo’s story. Imagine a young professional stepping into the high-pressure environment of an investment bank’s trading floor. The daily grind of managing profit and loss sharpened Kojo’s instincts and gave him a crash course in understanding financial markets. But his story didn’t stop there. Fueled by a desire to do more than trade, Kojo made the leap to hedge funds, where he now focuses on public debt investments and creative capital strategies

Hedge funds, as Kojo explains, are unlike the typical players in the world of capital allocation. Their flexibility and focus on liquidity set them apart. He takes us behind the scenes, revealing how hedge funds use strategies like public debt and private credit to allocate capital. It’s a world where creativity meets structure, and success hinges on managing risk without sacrificing upside (2:47).

But this isn’t just about hedge funds—it’s about their connection to entrepreneurship. Kojo draws a fascinating parallel between hedge fund managers and entrepreneurs. Both navigate risks, build teams, and grapple with the ever-present challenge of raising capital. For entrepreneurs, Kojo offers timeless advice: focus on the “boring but essential” parts of your business—compliance, accounting, and governance. These are the foundations that attract investors and set the stage for growth (6:13).

The conversation shifts to emerging markets, a space brimming with potential but fraught with complexity. Kojo paints a vivid picture of the risks—currency fluctuations, political instability, and inefficiencies—but also the opportunities for those willing to look deeper. He shares how investors can outmaneuver biases and misconceptions to unlock alpha in regions often overlooked by others (14:54).

We also explore the critical differences between capital markets and banks. As Kojo explains, banks are often the first stop for smaller businesses, offering accessibility and familiarity. Meanwhile, capital markets provide the scale and liquidity needed for businesses ready to level up. It’s a fascinating distinction that underscores the importance of understanding where you stand as a business (11:28).

Perhaps the most intriguing part of the episode is Kojo’s breakdown of the types of investors in hedge funds. From pension funds and banks to high-net-worth individuals, hedge funds attract those seeking consistent returns through compounding. Kojo reminds us that success in hedge funds is about playing the long game—building wealth that endures for generations (18:09).

And finally, we look to the future. Kojo reflects on the growing role of hedge funds in private credit and emerging markets, emphasizing the importance of designing strategies that adapt to the shifting landscape. As he puts it, navigating this space is as much about creativity as it is about structure (21:13).

If you’re looking to understand the intersection of entrepreneurship, hedge funds, and emerging markets—or simply want to hear a great story—you’re in the right place. Don’t forget to like, share, and subscribe.

Where to connect

• Visit the BSI Fund Website