YouSaid · the spoken record

Julia Bonafede

lines on the record: 73
first: 2021-07-29
most recent: 2021-07-29
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Clearly it's a huge responsibility and remembering every day that what a fiduciary decision is that you are every decision that you make is has to be in the best interests of the beneficiary, which is the worker or the recipient of the fund. And it's very easy in this business to want to chase after the next bright shiny thing because it's very difficult to get through market cycles when you really need to be a long-term investor to make all of the investment theory work on your behalf. But what ends up happening because of either circumstances or short-sighted decision making, really long-term investors have very short time horizons and so you end up building portfolios that are”
2021-07-29 · Capital Allocators · Julia Bonafede – Rosetta Analytics (Manager Meetings, EP.04) · IDENTIFIED FROM THE TRANSCRIPT · source
“So going back to that last chapter before Rosetta, talk about consulting business today and talk about your experience helping these large pensions and sovereign wealth funds. And you were supporting millions of workers and millions of people's pensions. What was that like and what was it like working with pensions all over the world?”
2021-07-29 · Capital Allocators · Julia Bonafede – Rosetta Analytics (Manager Meetings, EP.04) · IDENTIFIED FROM THE TRANSCRIPT · source
“Understand okay, what are they telling me? What is this information showing me? How can I use it? How can I have a more efficient portfolio that's going to work well over many market environments, not just the current, because it's very difficult. One of the consultants used to say to me, Julia, pension funds work like icebergs. Okay, so you might start the concept and then many years later you might get to where you actually get movement. And so understanding that you can't have instantaneous decisions and outcomes with clients, especially clients that have boards and governance processes that have to go through a certain cycle of decision making and support, it's sort of an ongoing push.”
2021-07-29 · Capital Allocators · Julia Bonafede – Rosetta Analytics (Manager Meetings, EP.04) · IDENTIFIED FROM THE TRANSCRIPT · source
“Marketing from the actual meat and trying to help clients truly understand when you put a portfolio together that there is hidden beta in everything because everything is either the pure stream, you're either lending or your owning, right? And then you put a lot of complication around those two concepts in whatever you're structuring and you can end up with a portfolio that looks like you're investing in asset classes or in beta as whatever form you're, but it will be complicated depending on how complex you invest. Being able to distill information and a consultant's gift is truly to be able to break a very complex idea down into sound bites that the client can take back and really”
2021-07-29 · Capital Allocators · Julia Bonafede – Rosetta Analytics (Manager Meetings, EP.04) · IDENTIFIED FROM THE TRANSCRIPT · source
“Have a lot of documentation at that point. Everything had to be created from scratch. And so I did a lot of work trying to make it easy for clients to get what they needed because everybody was busy. And even when I took over consulting, at that point, it was very much all of the service was done at the consultant level. There wasn't a lot of pooled material to help clients and to help scale the business. And that was understanding what it was that every client needed when they needed it. The markets changed so rapidly. You have even the consulting business. I mean, during that time period, it was a period of regulators. It was a period of just think that the advent of hedge funds coming through institutional investing and how you would separate”
2021-07-29 · Capital Allocators · Julia Bonafede – Rosetta Analytics (Manager Meetings, EP.04) · IDENTIFIED FROM THE TRANSCRIPT · source
“One of the great things about Wilshire is that if you had a good idea and you could figure out how to pay for it, that was the key. You could pretty much start anything. And so I really never had to go through a bureaucracy to try new things. And so if we wanted to launch a product, you know, sometimes it was by very rarely a group. But in analytics, trying new ways to, from a client service perspective, to build relationships, that was so important rather than calling a help desk and saying, how do I calculate duration? It was really, how can we be a consultant in analytics? And that was a really important part of getting our talented staff to understand how to serve clients rather than just answer questions. And so we did a lot of work in that area, a lot of work in education, it was one of the first, you didn't have”
2021-07-29 · Capital Allocators · Julia Bonafede – Rosetta Analytics (Manager Meetings, EP.04) · IDENTIFIED FROM THE TRANSCRIPT · source
“Reports and I was so large I couldn't get through the trading desk and I think they were so appalled because everyone would just go on garden leave if you were pregnant you know you just didn't do that and I was too busy so you know I like Humpty Dumpty bumped my way through the trading desk and then I had my daughter the next day and they sent me flowers I thought was really nice”
2021-07-29 · Capital Allocators · Julia Bonafede – Rosetta Analytics (Manager Meetings, EP.04) · IDENTIFIED FROM THE TRANSCRIPT · source
“The leaders of German banks, their portfolio divisions, their treasury divisions, UK investors, I even had an East German client, and that was really interesting to walk from one side of Berlin to East Berlin and see the complete difference in what communism looked like versus capitalism. So I truly was exposed to some very unique issues. And as far as being a woman, there were women at that time. They just weren't really in leadership positions. And I can remember maybe the one of the most awkward moments is I was.”
2021-07-29 · Capital Allocators · Julia Bonafede – Rosetta Analytics (Manager Meetings, EP.04) · IDENTIFIED FROM THE TRANSCRIPT · source
“It was a very interesting time because I don't know what they thought I would just they had the equivalent of their money management directory and I went down to the bookstore and I bought it and I just started calling investment managers. They'd heard of Welsh because of Cowper's. And so I could get them to meet with us. But the whole concept of taking your portfolio at the security level and I spent a lot of time in the bond market at that time because one of our strongest products was the Welsh axiom, which really could decompose the risk and return of a bond portfolio. And back then from a non US perspective, it was really just sovereign debt and currency. And so that was available, the corporate debt market really wasn't evolved as much as it was in the US. And so I spent a lot of time with”
2021-07-29 · Capital Allocators · Julia Bonafede – Rosetta Analytics (Manager Meetings, EP.04) · IDENTIFIED FROM THE TRANSCRIPT · source
“What was it like to be on the cutting edge of investment technology then and these emerging markets and being one of the few women in this business at the time? What was it like to be a leader in that space?”
2021-07-29 · Capital Allocators · Julia Bonafede – Rosetta Analytics (Manager Meetings, EP.04) · IDENTIFIED FROM THE TRANSCRIPT · source
“On the ground, not just the portfolio risks. So very interesting times. And at that point, after spending several years traveling all over the world, essentially by myself and in many cases to open up these markets, Dennis Tito asked me to open our first non-US office in London for our analytics group”
2021-07-29 · Capital Allocators · Julia Bonafede – Rosetta Analytics (Manager Meetings, EP.04) · IDENTIFIED FROM THE TRANSCRIPT · source
“Market countries, the first one was in Argentina, then we went to Brazil and China. We went everywhere. I went to Vietnam before it was even open to the US, if you can believe that back then we really didn't go to Vietnam. And our clients and their investment managers, we met the highest levels of government. We worked with stocks exchanges and really shared information. And it was really an interesting time because really the emerging markets didn't open up to US investors until 1992. And so being able to be on the forefront of that and run that business essentially for a few years really gave me a huge view as to how non-US and US investors looked at investing and how US investors in their investment managers really what those risks were.”
2021-07-29 · Capital Allocators · Julia Bonafede – Rosetta Analytics (Manager Meetings, EP.04) · IDENTIFIED FROM THE TRANSCRIPT · source
“Had to be done in a very laborious way, cutting and pasting was actually cutting and pasting. And so it was the ability to provide services and the need for information was great. And from helping to support the consultants, there were new avenues to learn new markets at Wilshire and one of the most exciting ones was the international division. Wilshire was primarily doing business within the US at that point and had started doing business with Japan and really had not offered its services anywhere outside of the US. And the first thing that we did, we had a woman come in, Nancy Lang, who worked at institutional investor in the conference business and brought that to Wilshire. And we started taking our clients to emerge.”
2021-07-29 · Capital Allocators · Julia Bonafede – Rosetta Analytics (Manager Meetings, EP.04) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, so I started in the investment consulting group working under Steve Nesbit at the time And it was just one of those places and times where everything was new. Wilshire was on the forefront of building really the software applications that are being used very widely in portfolio management today. So it started by having the first pension information system which allowed really large allocators to understand performance measurement. It was doing work with style analysis. It was competing head to head with Bara, building the first risk models. And from the consulting side, at that point, you know, when we used to create the big performance books, which were produced off of big mainframes and the asset allocation models, Wilshire was a pioneer in one of the first asset liability models. All of that information that came together that really started the consulting business.”
2021-07-29 · Capital Allocators · Julia Bonafede – Rosetta Analytics (Manager Meetings, EP.04) · IDENTIFIED FROM THE TRANSCRIPT · source
“So you and I both spent some time at Wiltshire. Now I understand where those rodeo seals came to. Play in your early career, but Wilshire was a lot different when you started than it is today. I'm very proud of my Wilshire days, and Wilshire's a great place to be from. I learned a lot there. Talk about how Wilshire's change and how your career started.”
2021-07-29 · Capital Allocators · Julia Bonafede – Rosetta Analytics (Manager Meetings, EP.04) · IDENTIFIED FROM THE TRANSCRIPT · source
“And so after leaving grad school and everyone else was getting jobs and marketing and some and investment banks, I ended up in the final interview process interviewing with the city national and with Wilshire. And after meeting the crew at Wiltshire and how interesting the business was at that point, wasn't sure that I wanted to actually manage a portfolio, but having a more broader look at the industry from both the investment manager and the allocator side, I ended up selecting Wilshire.”
2021-07-29 · Capital Allocators · Julia Bonafede – Rosetta Analytics (Manager Meetings, EP.04) · IDENTIFIED FROM THE TRANSCRIPT · source
“You're correct, Jim. I did not start out on Wall Street. I went circuitous route. I grew up on a cattle ranch and spent a lot of my time out with the horses and cows. I was on the rodeo team in high school and in college and after graduating from Boulder I went to USC and earned my master's degree in finance and entrepreneurship and was really introduced to investing through one of my professors Gil Babcock at USC who taught really a very quantitative course on investing and was a member of the USC student investment program where we actually at that time it was unique Provident Investment Council had donated assets for the students to manage and so we managed two portfolios the student fund and the California fund and we were stock pickers.”
2021-07-29 · Capital Allocators · Julia Bonafede – Rosetta Analytics (Manager Meetings, EP.04) · IDENTIFIED FROM THE TRANSCRIPT · source
“Everyone, my name is Jim Dunn, and I'm so grateful to be here on capital allocators with my friend and former Wilshire Associates colleague Julia Bonifetti. So Julia, before we talk about AI and machine learning and the current wild investment landscape, tell me a bit about how this road to cutting edge investment technology investment started for you. You are not cut from the traditional Wall Street cloth”
2021-07-29 · Capital Allocators · Julia Bonafede – Rosetta Analytics (Manager Meetings, EP.04) · IDENTIFIED FROM THE TRANSCRIPT · source
“Two bets here, right? First one is on the manager's self, and I've known Julia for 20 years and worked together. And the fact that we still work together is a testament to how Her integrity and her ability to really be what she is, which is one of the best minds and investing that I've ever run across. And then the second piece is then we're going to see if we save some capital to seeds products. So we started with sort of a $5 million investment and it grew from there. We now have four strategies with Rosetta, and three of them have been very, very successful. One of them has been turned off.”
2021-07-29 · Capital Allocators · Julia Bonafede – Rosetta Analytics (Manager Meetings, EP.04) · IDENTIFIED FROM THE TRANSCRIPT · source
“So when you take a new paradigm like that and still layer it into somewhat of a traditional portfolio without it, how did you think about how to size your capital allocation to that strategy within the context of your portfolio”
2021-07-29 · Capital Allocators · Julia Bonafede – Rosetta Analytics (Manager Meetings, EP.04) · IDENTIFIED FROM THE TRANSCRIPT · source
“So that, coupled with the fact that we kept seeing the same managers, the same strategies, and felt that it wasn't a lot of edge there. So this was something that was totally different. And we felt that would be attractive to our portfolio.”
2021-07-29 · Capital Allocators · Julia Bonafede – Rosetta Analytics (Manager Meetings, EP.04) · IDENTIFIED FROM THE TRANSCRIPT · source
“An edge, they felt. So we weren't getting a lot of feedback. So we sort of thought about this in a more general fashion. And then Julian Angelo came around and they want to do something different. And I think when we look at Portfolios and all of our managers we talk to, it's a sea of sameness Intellectually interesting for us to think about this as a skunk works. Let's think about can we use something out of machine learning? Let's start with the S&P, but then can we apply it to carbon? Can we apply it to portfolio construction? Asset allocation. So the idea originally was for us was to use Rosetta as a skunk works to look at what else can we do in a better, more efficient manner now that we have all this computing power.”
2021-07-29 · Capital Allocators · Julia Bonafede – Rosetta Analytics (Manager Meetings, EP.04) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, you know, it's interesting. Modern portfolio theory is not very modern, right? So we sit around and think about The next thing that we should be focused on and learning about it and trying to do some more work on it. And I think the ideation around this concept came from thinking about what was going on in the world, thinking about computer power, thinking about what we're seeing in our venture capital managers investing in these great companies that were going parabolic looking at things like SaaS networks and all of these incredible technologies. But what we kept seeing, the common theme of all of those, was the idea of computing power has this made these things possible. But what was not changing was asset allocation. And we started looking around and trying to find other investors that were looking at this. And everyone was talking about machine learning, but in the concept of Go or chess, but not in a way that was able to invest in a real fashion. So as we looked at other managers in the space that were looking at this, it was the big hedge funds, but they weren't able to share what they were doing because it was.”
2021-07-29 · Capital Allocators · Julia Bonafede – Rosetta Analytics (Manager Meetings, EP.04) · IDENTIFIED FROM THE TRANSCRIPT · source