- [Announcer] "Travels & Traditions with Burt & Nicholas Wolf" is made possible by Goldbelly, shipping stone crabs, pizzas, birthday cakes, and more from many of America's restaurants anywhere nationwide.

Goldbelly.com.

And by Swiss International Airlines.

Flying to over 100 worldwide locations.

Truly Swiss made.

Swiss International Airlines.

And by YP Foundation, helping those in need through education and improving life skills.

Guided by the principles of good deeds, charity, and public welfare.

YP Foundation.

and by Five Star Travel, Inc.

in Las Vegas, Nevada.

Since 1985, Five Star Travel has been developing and delivering detailed itineraries for trips, cruises, and vacations to destinations around the world.

Five Star Travel, Inc.

(elegant music) (elegant music continues) "Travels & Traditions with Burt & Nicholas Wolf" is a classic travel journal, a record of their search for information about our world and how we fit into it.

They travel to the source of each story, trying to find the connections between our history and what is happening today.

What they discover can improve our lives and our understanding of the world around us.

(lively rousing music) (bright music) - [Burt] In this "Travels & Traditions" program, we look at why The Palm Beaches have become the number one location for economic growth.

We visit the companies, individuals, and families who are contributing to that progress, and I get strapped into a fighting chair and argue with my producer.

Don't let me leave.

- All right, I won't let you go.

(cheerful music) - [Burt] For a long time, if you were in the big leagues of business, New York was the default.

Not anymore.

Capital is moving South.

I wanted to get a better understanding of what was actually happening, and so I began to look at the work of Joseph Schumpeter.

Schumpeter was an outstanding economist and had a distinct view of how capitalism worked.

In 1932, Schumpeter became a professor at Harvard University and eventually one of the most influential economists of the 20th century.

He popularized the idea of creative destruction.

He believed that capitalism can only be understood as an evolving process.

Whatever was in place today would be destroyed by something new.

And whatever was new would be destroyed by something even newer.

A great example of this is the many firms moving out of large cities like New York and San Francisco.

- When I was five years old, my family and I moved from New York City to Geneva, Switzerland.

May not sound like it, but I assure you I speak French.

When I was 16, we moved back to the United States, but we didn't go back to New York.

We moved to The Palm Beaches.

- [Burt] It turns out a lot of major corporations are making the same move my family did, though most of them skipped the step in Switzerland.

- Growing up in Geneva and New York City, I used to hear the word "capital" a lot, usually by people trying to sound important, wearing fancy suits.

I knew it was important, but I didn't really understand the difference between capital and money.

- [Burt] It's actually quite simple.

You can hide money under a mattress for a rainy day, or you can spend it on a piece of bubblegum at the grocery store.

That's just cash.

Capital, on the other hand, is money you use to make more money.

- In the 17th century, first in England and then in the Netherlands, this became the way people did business.

They used capital to produce goods and services.

Eventually we added the syllable "ism" and we got the word "capitalism".

- [Burt] New York was different.

It was founded in the 1620s by the Dutch as a trading post.

Their goal was simple: make money fast.

Everything else came second.

- 400 years later, that's still true.

- The Palm Beaches, once known for golf and retirees, are becoming a hub for capital.

Real estate firms, startups, private equity groups, and family offices are relocating from Manhattan.

- The weather, the work life balance, the lifestyle, and of course, taxes all play a role.

Whatever the reason, Wall Street is no longer just in New York City.

- [Burt] If you compared the financial world to a jungle, hedge funds would be the lion.

They have the most freedom to manage clients' money.

They can also be rather secretive.

To generalize, hedge funds have one main objective: beat the market every year and do it consistently.

- In my very first finance class in college, we had a lecture devoted to why it's impossible to beat the market over a long period of time.

It's called the Efficient Market Hypothesis.

- [Burt] The Efficient Market Hypothesis is a Nobel Prize winning idea that stock prices already reflect all public knowledge.

But here's the paradox, if no one tried to beat the market, the market wouldn't be efficient at all.

Opportunities would just sit there, waiting to be found.

Yet the moment people try to beat the market, their efforts push prices back into line.

- When you win the Nobel Prize, you get flown out to Sweden, you have a big party, eat, drink, but they also hand you a check.

When Eugene Fama won the prize for the Efficient Market Hypothesis, he split that check with Robert Shiller, who argued for the complete opposite.

- [Burt] Quant funds are a type of hedge fund that exists in that narrow space between theory and reality.

They're built on the idea that the market is usually right, but not always.

They use advanced technology and high frequency algorithms to find the opportunities in the market.

Voloridge Investment Management is located in Jupiter, Florida.

They have had success since they started trading in 2009.

Nicholas met with the president, Barry Miller.

- We wanted to bring our brand of data science and machine learning to financial markets to see if we could make money.

So it was somewhat of an unknown how profitable quantitative strategies could be.

But the neat thing about the financial markets you could argue is it's one of the most significant and most difficult machine learning competitions in the marketplace.

- What would you say to someone who believes that the markets are efficient?

- It's hard to imagine that the markets are entirely efficient.

I guess it depends on your timescale and I think people like myself and probably you could debate this from both sides, but we make money essentially, we think because markets are inefficient.

- [Nicholas] So it's evident that machines are very important, computers are super important in this industry.

- That's right.

- But you're still looking to attract the smartest individuals, top talent from around the world.

What's the human component in hedge funds?

- Well, even for quantitative investors like us, the human component is critically important.

There's a tremendous number of decisions that are made.

You know, if you think about just the starting foundational element of what type of machine learning algorithm do you want to use?

What data sets do you want to ingest in your system?

How are you going to deal with the messiness of those data sets?

What parameters do you want to define in your algorithm?

There's dozens, if not hundreds of these decisions that the practitioners that understand data science well have to make.

So the talent is critically important for what we do.

- [Burt] The software Barry and his team developed for recognizing stock patterns before they happen can also be used to recognize health related diseases before they happen.

What's the point of making all that money if you can't live very long?

- When you think of an assessment, if I was able to show you what your 10 to 15 year trajectory looks like across different health domains, that's fantastic.

And if we can do that, of course, the key element is can we do that with accuracy?

If we can do that with accuracy in a relatively holistic way, meaning across multiple domains, this really can be a tracking system and an assessment system for all of us to better understand our health.

Wealth without health is unremarkable, right?

If you don't have your health, nothing else really matters in life.

- This is the Volo Lab.

So this is where individuals that are enrolled in our program or invited to the program would come in and get baseline and follow up measures.

So we're looking for tons of physical biomarkers as well as blood biomarkers, and this is sort of how we would catalog and then implement lifestyle change.

So this station right here is actually the resting metabolic rate station.

This is where we'd have an individual lie down with one of these masks on and relax for a little while, and we would actually be measuring exactly how many calories they're burning in a day at rest and where those calories are coming from.

So fat versus carbohydrate burn.

And from there we can assess dietary patterns and then some dietary changes they might need.

- And if there's any one thing you could test to predict someone's metabolic health or health in general, what would you look at?

- Probably body composition.

So I'd probably go in and look at how much skeletal muscle mass they have, how much visceral fat they have, and subcutaneous fat.

We'd start from there for sure.

- And that's something obviously you can improve over time, right?

- Very, very improvable, all those metrics.

- We've seen a lot of businesses enter the South Florida marketplace that's really revitalizing or creating a commercial center city for West Palm, which is only 10 miles down the road from us.

So we're in close proximity.

Of course, Miami's exploding with growth as well, and we expect to see that continue.

- [Burt] In the late 1800s, a man named Henry Flagler brought his railroad to the east coast of Florida.

He built grand hotels.

He turned a wilderness into a playground for the very wealthy.

For over a century, West Palm Beach was known as a quiet place for retirees.

Today, people call it Wall Street of the South.

The man leading this new era is Stephen Ross.

In 1972, Stephen was fired from his job.

He borrowed $10,000 from his mother to start his own firm.

Most people would use $10,000 to buy a nice car.

Stephen used it to build a $60 billion empire.

He built Hudson Yards in New York.

He became the owner of the Miami Dolphins.

- Related Ross is the name of his Florida firm.

They're investing $10 billion into West Palm Beach, but only have 53 YouTube subscribers.

So I thought I'd lend them a hand.

54.

- 10,000 people coming to downtown every day that aren't coming here today.

- [Burt] Nicholas went to meet Jordan Bargas.

Jordan runs the development work here.

He started his career in New York City, then he moved to The Palm Beaches, just like myself.

- Yeah, I really like everything you're doing here, but I think it would be much better if they were three times as big.

- We're working on that.

(both laugh) - What is this?

(diorama shatters) A center for ants?

- Being a community developer, I mean, as Related Ross in this community, we care more about just building buildings, we really care about building up the entire ecosystem, right?

And what does that entail?

Obviously we have a lot of development going on downtown, but in order for the downtown to be successful, the entire infrastructure around it and the community around it needs to thrive for our developments to be successful.

So I would say we spend at least half of our time here at Related Ross thinking about how we can build up the community, build up the infrastructure that's needed for businesses to thrive.

We want companies to grow here, we want people to want to live here.

- [Nicholas] You're investing billions of dollars into West Palm Beach.

What's special about West Palm Beach and makes it attractive to invest this capital?

- [Jordan] As a landmass, it is the largest landmass in the state and actually the fourth largest in the country.

So if you think about the landmass and the opportunity to grow, the room to grow, that's where you have that opportunity in Palm Beach County and West Palm Beach.

And I think similarly to California, you look at a place like San Francisco, which is kind of like the big metropolitan urban environment.

And then you have all of what happened around San Francisco, like Silicon Valley, right?

Like Palo Alto, like Santa Clara.

And I think you can look at Palm Beach County as that kind of analogy.

- [Burt] It often begins with a few recognizable names, institutions with a national presence: Cleveland Clinic, ServiceNow, Vanderbilt University.

They're moving in.

Others are considering it.

And over time, that creates a sense that something important is happening.

With so much emphasis on a healthy lifestyle, Equinox has become part of the picture as well.

But from a culinary perspective, the arrival of Eataly may be the most interesting of all.

- So I think when you fast forward in 10 years, I think the downtown here is gonna be filled with world class educators, world class students, world class doctors, best of the best in terms of tenants and their employees.

So I think this will be one of the most important business hubs in the country over the next 20 years and I think we're just at the beginning of it.

- [Nicholas] The business development board of Palm Beach County helps companies relocate to the area.

Kelly Smallridge is the president and CEO.

She coined the term “Wall Street South.” - [Kelly] Wall Street South started in 2011.

And what we found is that most of the companies that had moved here, had an executive that already had a home here.

And we identified 183 executives who were connected to a financial service firm that did not have a presence here.

And we launched a major marketing campaign, and the five companies that came here in 2011 are now 250 firms that have moved here in 2026.

We focus on certain industries that we believe are complimentary to the foundation of businesses already in Palm Beach county.

We are out there marketing to states, especially those that have high taxes, to sell them on bringing those jobs to the Palm Beaches.

- [Burt] When I first started writing television scripts, I used a typewriter.

I liked the sound it made.

It gave you the feeling that something productive was happening.

Now I write on a computer.

That's how most people get their work done these days.

Artificial intelligence is being adopted by many businesses.

One of the companies working in that field is ServiceNow.

ServiceNow makes software that helps offices keep track of their work.

Instead of passing papers from one desk to another or moving files between filing cabinets, people move and file the information on a screen.

Ah, progress.

However, computers rarely make that satisfying noise an old typewriter did.

ServiceNow is worth more than a hundred billion dollars.

That's the sort of number that gets people's attention.

And the company has decided to build something new in West Palm Beach.

Working with Related Ross, ServiceNow is building an artificial intelligence hub in the downtown area.

The project will create about 850 jobs.

Their new building should open in 2028.

The Palm Beaches is famous for many things.

Among them is old money and new ways to spend it.

Related Ross is building the offices while Ridge Capital is filling the bank accounts, and Rybovich is where that money goes to sea.

In the interest of full disclosure, I should point out that I am okay at fishing, but rather poor at catching.

As a result, most of my nautical life has been spent on sailboats.

I started out at the age of six with a seven foot optimist.

And except for a brief interlude on, or should I say in the USS Philadelphia, a fast attack nuclear sub, I continued with sailboats.

Over the years, I've become friendly with a number of people who are devoted to fishing.

And those that were devoted to deep sea sports fishing gave me real appreciation for that sport.

And particularly, the boats that are designed for that sport.

- When I first went to work with my dad and my uncles, this was the average size boat in the forties.

And it was a big boat then.

Now this is a little boat and the average is in the seventies, and in front of us is a 75 footer that we're building.

- Let's go check it out.

- For a great guy- - [Burt] Michael Rybovich is a third generation boat builder who runs the yard and is in the process of passing on the business to his sons Dusty and Alex.

- And the great thing about the next generation with the boys is that they grew up with the technology.

And the technology, the ability to use that technology as an advantage.

So in the design process, it's become essential.

And a dinosaur like me would have a hard time within that envelope.

You know, I'm still a pencil and paper guy.

But the boys have come up with all this and they can use it to their advantage to save time and to be more accurate.

The whole requirement to go fishing now has changed.

Instead of getting away from it all, you want to bring it all with you.

And not only do you want to bring all the creature comforts with you, you want to bring all the creatures with you, and your buddies, and your family- - It's like having a floating Four Seasons hotel with you.

- [Michael] Very much so.

- [Burt] Tiger Woods is a resident of The Palm Beaches.

He's one of the best golfers in the world, winning 83 PGA Tour events and 15 major championships.

In 2019, he teamed up with businessman Greg Bartoli and PopStroke.

Bartoli started his career on Wall Street.

But like many New Yorkers, myself included, he wound up in The Palm Beaches.

- Well, this is PopStroke and this is PopStroke in West Palm Beach.

And you know, the great thing about this business is that it connects across generations.

So we have something here for everybody, regardless of your background, your skill level.

Gone are the days of windmills and the clown mouths and now you have these professionally designed versions of a real golf course, but on a smaller setting.

- So what inspired you to ditch the traditional mini golf surface and go to more of a realistic, I was feeling this earlier, it's not real grass, but it putts like it.

- It does.

And we have a proprietary turf that we use, as you can see here.

These greens roll at about a 12 and a half, which is kind of similar to what you'd see in a PGA tour type setting.

And we just thought there was a way to resonate with golfers of all ages whether you're a beginner as a 3-year-old and just being introduced to the game of golf, or if you're a seasoned professional, there's a way to play these courses in a way that everybody can enjoy whether you're experienced or not.

- Why start here?

- Well, this place is first off, it's the mecca of golf.

Jupiter, Florida, Palm Beach, Florida.

Whether you're a tour pro or whether you're just an avid golfer who enjoys the sun and the weather.

Palm Beach County right now is literally on fire with people moving here from all over the world.

Whether it's capital that's moving in from Wall Street and finance, hedge funds, private equity firms, or it's just Baby Boomers looking to retire and get outside in the sun.

Young families everywhere.

I mean, the job growth down here has been extraordinary.

Obviously the weather is fantastic, but also the business climate in the state of Florida and Palm Beach County in particular is the best business climate I've seen anywhere in the United States.

So it's no surprise that companies are moving here from all over the country.

- So what is this, this is a dog leg.

- This is a dog leg left.

- Wow, I've never looked at a mini golf hole and was like, "Wow, this looks tricky."

(energetic music) That one ended up a bunker.

Let's see the pro do it.

- Let's see.

Let's see, all right.

- [Nicholas] That made me feel so much better, yeah.

(energetic music continues) Oh, that worked out pretty well.

(energetic music continues) Ah, we'll edit that in post, it'll be fine.

(laughs) Very nice.

Very nicely done.

(lively music) - [Burt] Every March, Downtown West Palm Beach fills with one of the largest boat shows in the world.

Hundreds of boats line Flagler Drive.

Sailboats, speedboats, fishing boats and yachts.

People aren't simply browsing, they're buying, which is something I find a little astonishing.

About 55,000 people attend the show.

I've been to a number of boat shows over the years, and this one feels different.

Quite a bit of business takes place.

During its five days, sales reach roughly $725 million.

That's about 145 million in a day.

Even if you're not good at math, you can tell it's a lot of money.

The show supports thousands of jobs and during the week, hotels fill up and the restaurants get busy.

I tried to get a dinner reservation one evening, which may have been a little too optimistic.

The show began in 1986 with about 50 boats.

Today it ranks among the five largest boat shows in the country.

Well, that's a look at The Palm Beaches, which is busy becoming the new capital of capital.

But at the heart of making money is creativity.

You need an idea or an invention that will make money for the investors and the creators.

And once you have creativity and money in the same place, people become interested in culture.

Today, The Palm Beaches is a world epicenter for all three: Money, creativity, and culture.

For "Travels & Traditions," I'm Burt Wolf.

But wait, there's more.

For daily reels featuring interviews and stories filmed during "Travels & Traditions," visit @BurtNicholasWolfTV on YouTube.

(elegant music) - [Announcer] "Travels & Traditions with Burt and Nicholas Wolf" is made possible by Goldbelly, shipping stone crabs, pizzas, birthday cakes, and more from many of America's restaurants anywhere nationwide.

Goldbelly.com.

And by Swiss International Airlines.

Flying to over 100 worldwide locations.

Truly Swiss made.

Swiss International Airlines.

And by YP Foundation, helping those in need through education and improving life skills.

Guided by the principles of good deeds, charity, and public welfare.

YP Foundation.

And by Five Star Travel, Inc.

in Las Vegas, Nevada.

Since 1985, Five Star Travel has been developing and delivering detailed itineraries for trips, cruises, and vacations to destinations around the world.

Five Star Travel, Inc.

(bright chime)