In this episode, we discuss:
- How assets are managed in the private space vs. institutional space
- Biases in asset allocation and how to overcome them.
- Using Alpha, Beta and other investment strategies
- Due diligence and things to avoid in the process
- The risks of manager selection and what it takes to be a good manager.
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00:00 - Intro
03:23 - About Chris’s background and role at Venturi
12:45 - Disrupting the 60/40 model and formulating a new standard
17:54 - How the industry has evolved over the years
21:56 - Is private equity less risky?
23:43 - Is liquidity being more or less valued than it should be?
27:39 - Alpha, Beta and mapping strategies into categories
32:37 - Dispersion and persistence of returns
36:30 - Setting objectives and making decisions
40:14 - Overcoming biases
44:20 - Dealing with randomness
47:33 - Important skills as a manager
54:29 - Timeframe for analysing a manager’s performance
57:46 - Things to avoid in the due diligence process
01:00:14 - Risks within manager selection
01:03:00 - How much experience do you need?
01:05:09 - Advice for working with asset allocation and manager selection
01:06:12 - Book recommendations