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Julian C. Salisbury

lines on the record: 70
first: 2023-05-05
most recent: 2023-05-05
sittings or episodes: 1
sources: podcast

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“Not just about maximizing the profit on the individual deal, but how do I maximize return on my overall portfolio over a long period of time?”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“I started out in life really doing as a micro analyst, like covering distress credit situations. And it was always about finding that complicated, weird, interesting deal where you couldn't really lose money and there was interesting convexity to the upside and it was all about the art of maximizing risk adjusted return on that one trade and almost having like a bit of a dismissive view to people who just put money into like mutual funds and regular equity funds and little fixed income funds. And sometimes you can get lost in the wood for the trees and just the power of compounding a diversified portfolio over decades has proven to be a highly successful path to wealth maximization. So it's really taken a step back from those.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“Become a deep expert in that one area, the go to person, but then you want to start, unless you want to do that for the rest of your career, you need to start adding some breadth. But it's getting the balance right because you can't, if you're skipping from one area to another and you never get deep and expert in any one thing, then you've become too much of a generalist. So it's getting that balance right between Specialist skills, but not getting so sucked in that you become siloed and that's the only thing you ever do.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“I'd say three things one, don't be put off as we talked about earlier by some of the strange language and nomenclature. Become a student of it, study it, and break through those barriers and don't be intimidated by it. Two, I would say develop an area of expertise early on. And what I mean by that is in order to start really adding value, you need to prove yourself to be really expert or knowledgeable in a particular area, the go-to person on that issue. And it could be relatively narrow. So I'll give you an example. I used to be a high-yield research analyst. You learn how to model one cable TV company, and then you do a second and a third, and then you, because of the process that you go through, you start to develop an ability to assess relative value between those things. And then you do a fifth and a sixth, and then you become the go-to person.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“And I think that's something everybody needs to be paying attention to. I've picked up a book recently looking at, it's called The Shallows, which is really looking at how the mind is being rewired by the internet the way we think and the way we operate is fundamentally changing. I mean, you know, everybody's become like... Everybody's developing kind of attention deficit disorder because of the constant flow of information and actually the ability to sit down and absorb a long-form book is becoming harder for a lot of people because they're so used to the instant gratification of the Twitter feed or the short-term news story.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“Whenever I get asked this question, my first response is about 25 investment memos every single week add to that the various other business updates that I get and the prep for management committee on a Monday detailing all of the client flows in the business. It doesn't actually leave a lot of time or eyesight left to pick up other books. And with the advent of the iPhone, like this constant stream of information from Bloomberg and other news sources means that I'm reading a lot, but not enough time for pleasurable books. But there are a couple. There's the avoidable war. I think the geopolitical situation with China is something that everybody should be very mindful of right now. And that's going to impact asset prices and flow of money.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“Everything had to be founded in analytical rigor and facts, not what management told you or what story you heard. Take nothing for granted. It's like, can you prove it in the numbers? I mean, it's back to the comment I made earlier around accounting. We get a lot of kids who come through the business who have fancy MBAs, but they don't truly understand the interactions between a P&L, a balance sheet, and a cash flow statement. And if you don't have all three, and I mean a complete one, not a partial balance sheet with just the liability structure, but everything.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“And the realization that everybody's replaceable. Some are harder to replace than others. But he just kept that grounding and sometimes people lose sight of that and believe their own. Story a little bit too much. That was a great lesson. I had a when I after a couple of years at Goldman Sachs, I was working for a guy in the distressed credit business and his analytical rigor and his relentless questioning and skepticism almost to an unhealthy level was actually a great learning experience because it was in a world where a lot of people like to believe that the brochure or the prospectus, he never, it was...”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“Sometimes my level of interaction with them is so great. You can learn a lot from an analyst and you can certainly learn a lot from your peers, partners that work for you, managing directors that work for you. So whenever I get asked this question, I sometimes feel like I've almost learned more from the people who work for me than the people I work for. But look, there have been some particular strong people along the way. I remember a guy that I used to work for, KPMG, and one year I said to him, gee, at the end of the year, and this guy was unreplaceable. I mean, he seemed to be in the middle of every piece of business that we did. And you couldn't imagine how the place would function without him. And I said, you know, at the end of the year, you must be able to ask for whatever you want. And he just looked at me and said, they'd manage. And it was really like the humility there.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“No, there's a few people along the way. I mean, first of all, I mentioned this earlier, but Goldman Sachs, you're surrounded by great people that you can learn from developing, you know, and that could be technical skills. It could be leadership skills. And the other thing I would say is over the years, whenever I get asked this question, I think not just about who I've worked for, but the many things that I've learned”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“My two favorite shows at the moment are Ted Lasso and Succession. Very different shows. One speaks to my interest in sport and the other one. It's almost a comedy. It's so dysfunctional family.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“I competed at a pretty high level up until the age of the age of like around 20 actually 2021. I was British university champion for a few years and competed in the top division. But at some point I realized there wasn't a lot of money in that sport. And I didn't like the idea of sleeping in the back of a van, chasing glory around the world for the next five years.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“It's a one person kayak. You sit down, you have a double bladed paddle, and you go down to Whitewater Rapids and you get navigating poles in the river. You have gates that you go downstream through and gates that you go upstream through. Most people only know about it because it's in the Olympics every four years and they forget about it. But it's a pretty interesting competitive sport.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“I picked up kayaking when I was 11 or 12. I started competing when I was fourteen or fifteen. I got quite into it. I took it very seriously. I developed a passion for it. And next thing I know, I'm in the top division in the country and competing at the highest level.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“Generally, are just unusually attractive. So that's our mezzanine credit fund. And then our Horizon Climate Fund is really more of a private equity style control investments where we're looking to invest in companies that will have a positive impact on the environment. It's an Article 9 fund and it's investing in things like climate, water treatment, recycling. And these are fast-growing companies, but also there's absolutely pools of money that are managed”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“These businesses, and we do that globally. That's our growth equity business, and that's a team that's been, it's a first time fund, but we've been doing it for 30 years, just using our own money, our MES fund. This was actually the eighth in a series of mezzanine funds. We've been giving this private mezzanine credit. We've been doing this for decades. And this is really a strong power alley for us in as much that we're tied to the preeminent investment bank. We have very close relationships with sponsor clients. This means we're at the leading edge every time an asset is going to trade or refinance. We know about it because our investment banking business and we can position ourselves as the preferred provider of the mezzanine capital to facilitate that transaction. And I would say right now, given what's going on in the world, the rates of return available to us in the private credit markets.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“So, taking each of these are growth equity fund really focuses on a couple of different segments, enterprise software, fintech, healthcare and consumer. Those are kind of like the power alleys in terms of industries that they focus on. They're typically making significant but minority investments in fast-growing companies. These are companies often with enterprise value in the area of couple hundred million to a billion dollars sometimes skews higher, but I would say the sweet spot is that area. And the reason for that, these are kind of companies that are growing, at least were growing 50 to 100% rates of revenue growth where the potential for takeout isn't exclusively an IPO. They could be sold to a strategic. And we're trying to help grow these companies over a three to four year period, prepare them for a public exit or a strategic exit. And we build a portfolio of these”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“But then when you have that magnitude of move, they really roll over. Another great example of this, I thought it's kind of funny that in the growth equity space that people didn't seem to appreciate the full how much duration risk they were running. Guess what? When you own a bunch of public assets where all the profitability is 10 years out, that's a long duration asset. So when you have a rate move like that, it really causes a complete dering.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“You could have bought the best piece of real estate. You could have bought the best Class B office 12 months ago and not anticipated the pace of rate hiking that we just saw. And it just repriced the whole asset class. So I think the approach, the focus on the rate cycle really varies from somewhere like our money markets business where Differences in duration in how we run that portfolio being plus or minus 10 days can make a huge difference in our returns and performance relative to other money market managers. We have other businesses that might appear less rate sensitive or less obviously rate sensitive.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“You have to break it down asset class by asset class within our macro businesses, within our public markets businesses, plus minus 25 basis points in terms of peak and the exact month it starts rolling over, it makes a huge difference and it's something we focus on. We have a research-based approach. We have an outlook and a set of expectations. And if the reality deviates from those expectations, we'll refine the approach. We have other asset classes that on the face of it should be less sensitive to the day-to-day machinations of the rate market. But when they move as rapidly as they just did, it can have a dramatic effect. So what do I mean by that? You know, I sometimes think as, you know, when you're a micro investor doing private deals, it's like playing a game of chess. If you get the macro wrong, it turns out you were playing chess on the Titanic.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“Form that kind of bedrock of the income portion of my portfolio. And similarly on the 60 side, it's not just about public equities and being index. Are there private equity alternatives that can give me some diversification, exposure to types of assets or industries that I couldn't otherwise get exposure to that accrete on a more consistent and persistent basis over time and don't have quite the day-to-day volatility that we see in public markets?”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“No. I mean, it was a bad year for 60-40. That's clear. But you also have to recognize that the speed and nature of that rate hiking was pretty unprecedented. By the way, it really demonstrated why diversification in a portfolio is important because there were other asset classes you could have owned that would have seen better performance commodities, for example, had a particularly good year. One could argue that it was simply the difference between mark to market and non-mark to market, but if you'd had a more a heavier weighting towards privates in your portfolio, that would have created a ballast and some consistency to your returns. But I certainly don't think it's dead, but I do think people should think about, you know, within the 60-40, for example, is it all public bonds and public credit or are there other alternative products, private products that can help?”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“Is the equity markets are fairly valued on most metrics that you look at? And therefore, we view rates as most attractive generally, credit as somewhere in the middle and equities as looking like the most stretched. But I wouldn't make a, you know, that causes you to tilt or lean in terms of how you adjust your portfolio, but you don't like, it's not a radical shift in approach. You know, we look at people's long-term investment perspective. What are the long-term goals of the client? And do they have an asset allocation that's going to help them meet those long-term goals? So we start with a strategic asset allocation, but then there could be tilts around that based on the environment.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“I think you have to have some consistency to your process, but also have the humility to realize that you need to make adjustments. And every time there's an event in the market, it should cause you to rethink how you do things, whether it's SVB or the events that we saw in the UK pension system last year. These are opportunities to learn and enhance your process. But I don't think this is a wholesale shift. We're in a higher rate environment, obviously, for now. And while rates will likely start rolling over into next year, I think we're in an environment where the hurdle rate for making more illiquid investments is higher. So you've got to be really mindful that you're getting paid enough for a nominal return basis versus the risk-free rate. But I don't think this is a major shift. I mean, the way we're looking at the market today.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“The business there's a general need to have more talent to continue to provide the level of advice and service that we would want. From an investment perspective, we're continually looking at our teams and continually looking at performance and looking to refine. Our teams, but we really find that those investing businesses are quite scalable. So it's really, as we expand the size of the platform, we do need to add talent in order to help manage and expanding pool of assets. And then on the infrastructure side, I would say there's continual demand and need to invest in technology and operations in order to deliver a better client experience and to continue to improve and enhance our already strong risk management capabilities. But, you know, that's an area that we've added quite a bit of talent in the last few years.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, when I think about our need for talent in the organization, I think of it as three buckets. There's our client business where we're providing solutions and advice to our clients. There's our investment teams. And then there's the operating platform. And we'll come back to that last one in a second because that's a critical area of focus for us. I would say from a client perspective, we really see growth across all of our client channels. So as we grow the business, as we expand the number of clients and we expand the number of offerings and solutions that we're bringing to those clients, we naturally need more client advisors to help support the growth of that business and maintain the level of service and advice that our clients expect. So whether it's our institutional business across pensions and endowments and insurance, whether it's our private wealth advisors where we're adding advisors or our third party wealth channel as we scale and grow.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“But the other thing that's key is as you're whilst you naturally have people joining and some attrition is making sure you have a strong core of people who are consistent and have been there for a very, very long time, especially in the asset management business, because when people give us money to manage, they're giving us money to manage for a very long time. It's not about a transaction or a trade. So if you look at our core business, we have many hundreds of investment professionals that have been doing this for decades.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“So it's really broad based. And look, it's a constant hiring approach. I mean, I think I heard some stats the other day that a little over 50% of the people at the firm have joined in the last three or four years. And that's quite natural and understandable. That's a combination of natural attrition that you have in any business, growth of the business, some acquisitions that we've made. So integrating all of that talent and integrating, ensuring that there's a cultural assimilation is really important”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“recruitment approach in addition to that lateral higher rank you know while we while we certainly endeavored to bring people in at the campus level and grow them and help advance them over time to take on more senior positions so that often when somebody leaves there's you know somebody behind them ready to take on that job and in some cases more than one person”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“No, it's absolutely critical. And it's amazing the difference one person can make. So we have a pretty well tried and tested campus recruitment approach. So we're going out to schools across the nation as well as around the world to find the best and brightest talent. I would say we've opened up the funnel materially over the last decade or two to try to expand the size of the searchable universe essentially to attract not just the obvious kid who did the finance degree at the obvious finance focus school, but to attract a broader range of talent. I really find that diversity, and I use that term broadly defined, people who come from a variety of different backgrounds, experiences, different college degrees can be very useful to bring that range of people into an investment business. So we have a tried and tested kind of camera.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“Grow the business, there's a general need to have more talent to continue to provide the level of advice and service that we would want. From an investment perspective, you know, we're continually looking at our teams and continually looking at performance and looking to refine our teams. But we really find that those investing businesses are quite scalable. So it's really, as we expand the size of the platform, we do need to add talent in order to help manage an expanding pool of assets. And then on the infrastructure side, I would say there's a continual demand and need to invest in technology and operations in order to deliver a better client experience and to continue to improve and enhance our already strong risk management capabilities. But that's an area that we've added quite a bit of talent in the last few years.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, when I think about our need for talent in the organization, I think of it as three buckets. There's our client business where we're providing solutions and advice to our clients. There's our investment teams. And then there's the operating platform. And we'll come back to that last one in a second because that's a critical area of focus for us. I would say from a client perspective, we really see growth across all of our client channels. So as we grow the business, as we expand the number of clients and we expand the number of offerings and solutions that we're bringing to those clients, we naturally need more client advisors to help support the growth of that business and maintain the level of service and advice that our clients expect. So whether it's our institutional business across pensions and endowments and insurance, whether it's our private wealth advisors where we're adding advisors or our third party wealth channel as we scale.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“Certainly helps inform investment judgment and decisions that we're making on the asset side. And then I would say the final thing is just, you know, kind of from a strategy perspective, what are the new investment products or investment solutions, whether it's new strategies or different wrappers around existing strategies in order to be able to deliver our investment solutions to a broader range of people?”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“So that's the kind of more investment side of things. Then there's business reviews going through each of these individual investment units and really looking at their structure, their resource allocation, their talent, their performance is something I spent a lot of time on really dissecting not only what is their performance, but why have they performed the way they've performed, both on an absolute and relative basis, both versus benchmark and versus clients? I spend a lot of time either individually, one-on-one with people or talking to our different investment teams around talent and cultivating talent and building culture within the businesses. And then there's clients. I spent a great deal of time with clients either on the road, a lot of time on the road probably, you know, like 20 to 30 percent of the time on the road with clients. And I always find those just incredibly informative meetings really, really deeply understanding the wants and needs of our clients.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“It's hard to say a typical day, but I could tell you over the course of the week generally how I spend my time. I mean, first of all, one of the most fun parts of it is sitting on the investment committees for our private side activities. So we have our private equity committee on a Tuesday, our growth committee on a Monday. We also do infrastructure on a Tuesday. We do real estate on a Wednesday and credit on a Thursday. So that's kind of like a central core part of how I spend my time really seeing what the teams are bringing through in terms of deals that we're looking at in the early inception of the transaction, as well as taking these deals all the way through to final approval. That's on the private side. And then on the public side, really getting market updates from our various portfolio managers and CIOs across the public side business in terms of what's been happening in those businesses.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“It was a little different in this case in that they had very long dated obligations or pension liabilities. They couldn't match those liabilities in the investment market. So they bought duration in the swap or the derivative market. And then when you saw a sharp move in UK interest rates based on inflation concerns,”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“Yes, there's some fairly heady valuations. There were some fairly aggressive kind of investment strategies being pursued. But I would say generally there's less leverage in the system. The banks, the large banks at least, are better capitalized. You have fewer hedge funds making long-data liquid investments with three-month capital. There's just generally more duration in the liability structure so that people can withstand a storm. And then you see the events of September of last year, where the UK pensions many of the UK pension plans had a very short-term liquidity crisis because they basically had a mismatch between their assets and their liabilities.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, exactly. But there are certainly things you could prepare for. So can I withstand an equity drawdown? Do I have the liquidity available to meet my ongoing cash flow obligations even in the event of a drawdown? And then you see some surprise events. So it was kind of interesting. We've seen a couple of these events now. One, you know, When people have asked me to compare and contrast today versus 2007, 2008, what you hear from a lot of people is.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“But what you have to really do for each client is help them understand what's the risk, the deviation that could occur around that base case. And sometimes people become relatively blase or they kind of fall into this mode of thinking. There's only ever going to be a tight range of outcomes and they don't think about the extreme event. What could happen in a more could I survive an extreme set of circumstances? So a great example, you know, some of these things you can plan for and some you can't. So for example, it was probably unreasonable in March of 2020 that companies would have a war chest, a hotel company would have a war chest that would see them managed through 12 months of zero revenues based on the global pandemic. So there are some things that you can't, but there are a lot of things that you can.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“If only you could Well, I would say whenever you are making investment recommendations to your clients, you have to think about a range of potential outcomes. Of course, there's a base case outcome for most investments that you might make if you invest in a bond. Base case would typically be that it pays a coupon until maturity and then redeems at par. It might not be a straight path between when you buy it and when you get redeemed, that's a general expectation. There's a general expectation in the markets that if you hold equities long enough, they'll generally go up in price. Again, it may not be a straight line. Similarly, when you buy private assets, there's a general expectation that these things will accrete in value.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“So then they have to look at what's my mix and how does each investment that I make help me achieve that goal. So it's really understanding funding source duration, funding source return requirement, and then for certain types of financial institutions, understanding the capital rules. So for example, if we invest money for an insurance company, how we structure that can make a difference to the amount of capital they have to hold against it. So it's our job to better understand these. Of course, the best funding source is to just have lots and lots and lots of your own money with no particular time horizon on which you give it back, no particular capital rules that you have to comply with, no clients to actually have to answer to. But most people don't have the luxury of having that much money.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“So, what I mean by that is first understand the duration of your funding source. That's what I mean by liabilities. Insurance companies have very long dated capital. Pension funds have quite long dated capital. It tends to be quite sticky. So, first, let's understand the duration of that funding source. And then the second is understand the return requirement of that funding source. So for example, a lot of pensions and endowments would tell you in order to meet my obligations to pay pensioners for the next few years, I need to generate on average a 7% return on that portfolio. Okay, and if I do more, that's good. But in extremis, I should want to achieve a 7% return and take as little risk as possible.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“If you're an individual investor, for example, you don't have to give that money back. It's your money. So you may be able to afford to tie it up. As long as you've kept enough money aside to meet your near-term liquidity needs, your cost of living essentially. If you have a private equity fund where you've raised money from institutional clients, they have given you that money for 10 years often. some cases it could be longer so you have time to invest that money generate a return on that money and give the money back if you have hedge fund money you may have to give that money at a month or three months notice so you have to be very careful about how long you lock up your investments for and if your source of funding is overnight deposits that can be called on that are on demand then you have very very short liability”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“People should be, if people had forgotten about asset liability mismatches, they got the starkish reminder of it possible with the collapse of SVB a few weeks ago. Generally, it's asset liability mismatches that causes the bank failures, but it also causes, in some cases, hedge fund failures and other financial institutions to fail. So what I mean by that is what is your source of funding?”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“Our job as an advisor to our clients is to know them intimately, to understand them, to understand their funding structure or their liability structure, to understand their risk tolerance, to understand their investment philosophy and approach, and then really to bring to them a variety of solutions. We have a team that really looks at their portfolio holistically across all asset classes. And then we have individual teams that can help bring implementation in each of the individual asset classes to make up that overall portfolio. But it's really a solutions-oriented approach and a very client-centric approach.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“really informs your view on the forward path of asset prices. And then I would also say we were seeing increasing need from our clients to increase allocations to alternatives. And we were doing a lot of this for ourselves, but we didn't have enough investment product to be able to offer to our clients and scale and grow the business. So it was a very natural evolution to take a series of businesses which have been prosecuted either wholly on balance sheet or to a large extent on balance sheet and start to evolve that business model where we continue to commit our own capital and our partners capital, but to bring in client money alongside us.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“Problem is that there are multiple problems with that, but one is you miss out on a huge information piece, which is understanding what these huge asset allocators and investors want and understanding what their liability structures are and what their needs are from an investment perspective.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“It's interesting because some of it's helpful and useful, and then sometimes it can burden you. When I ran the special situations group, it was a pure investing business. We didn't really have clients. We didn't really have to worry about marketing or advertising, didn't spend time on podcasts or TV. We kept everything as quiet as possible. And 100% of the focus was just finding interesting investments that we generated the highest return on equity possible for the firm. There wouldn't be a dollar of risk that we would deploy that I wouldn't personally review. We'd have a couple of hundred deals a year coming through investment committee. And that was interesting and it was a great model while it lasted. But I would say that the industry changed, the regulatory environment changed. And also I used to sit back and think this is great. We just get to focus on assets and asset risk management. I don't have to worry about flying around the world collecting capital from LPs. We have one LP and it's the firm, it's Goldman Sachs. And they're in the same building.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“Various clients Is that more or less right? So we have different teams that do this. So we have our MAS team, our multi-asset solutions team, who are really providing more of the overall portfolio advice. And that's a discrete skill set for doing that. And then we have investment teams in each of these areas. So we have specialists in each of the sectors that I set out for you. I'm responsible for each of these individual investment teams, making sure we have the right players on the field, the right processes in place. And then as it relates to the private side activities, I co-chair all of those investment committees. So the individual deals that are coming through in our private equity business and our growth equity business and our real estate business. So we have, you know, I'm one person. My primary responsibility at the end of the day is to make sure that we have the right people on the field fulfilling each of these roles and functions.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source
“That they have or tilts that they have a desire to include or exclude certain products or QSIPs within their equity portfolio or fixed income portfolio.”
2023-05-05 · Masters in Business · Julian C. Salisbury on Managing Global Assets · IDENTIFIED FROM THE TRANSCRIPT · source