YouSaid · the spoken record

Kip McDaniel

lines on the record: 107
first: 2017-08-07
most recent: 2017-08-07
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

“What advice would I give myself today? Calm For people who know me, I have calmed since the start of covering this, I'm much calmer. It's probably because I have a wife who tells me to shut up sometimes. And I've had a few things in my life that have put a lot of things in perspective in a good way Just everything's a crisis will get better eventually. I used to flip out editorially. I feel bad for some of my employees at the smallest things would throw me off because I was so invested in what we're doing, but I lost perspective on a misspelling isn't going to end your career kind of thing. So now I hope that even now I would give the advice to 25-year-old Kip, calm down, take the long view, and things will be fine.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“And I should have learned. Yeah. So it's your waning days. You are sitting in your crewboat. You're in your 90s, let's call it. You're not really rowing anymore, but you're sitting for old time's sake. What advice would you give yourself today?”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“I wish I knew that you should leave this kind of stuff to the experts, right? There are people who, there's not as many people as you think who have a skill in this business, but there are clearly people who are good at choosing investments that will go up at a rate of return that is like acceptable. And I'm not sure I'm one of those people. And I should have learned that a couple years before I did.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“So those are the, you know, specifically journalism that article, but in general, as I said, the events we put on here at II and CIO, those are the things that I'm proud of because it's a team effort and you get the people there.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“He's alive. He had suggested in this letter that he was going to go kill himself. He was alive. So now he's waiting to stand trial. So I hope to write a follow-up jailhouse interview with him with him.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“And so I really dug into this and went real journalism style and interviewed everyone, got security camera footage, got original documents that he had been falsifying return statements for fifteen years. And to our audience, to institutional investors, they would know these are false statements right from looking at them. But to a preschool teacher who's giving her money to a family friend, these look totally normal. And so I wrote this article. It was the most read thing I ever wrote, and it sort of spoke to like the actual impact of illegality in this industry. It was a mini Birdie Manoff. People's lives were actually on the line when do this. Now the twist is he went missing for eighteen months and around three months ago. He walks into the local police station.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“They sent out the search party and they find he's jumped the border. He's gone from Vancouver Island down to Washington, and they think that's weird. This is on a Tuesday. On a Thursday his clients opened their physical mailbox, and in it is a letter that says I'm sorry I lost all your money in the dot com bubble. I've been running a ponzome.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“It was a piece called The Departed, and it was actually not really about institutional investing, but it was close enough that we felt we could put it in the magazine. It was a financial advisor who I grew up knowing on Vancouver Island. He had gone to Princeton, he'd gone to three Olympics in rowing, he'd moved back home and become a financial advisor to a lot of my family friends, including a legendary rowing coach that I know, my preschool teacher, a lot of my parents' friends. And not last November, but the November after, before that, sorry, he had gone for a bike ride and didn't come home that night.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“Most proud of besides my rock walls, I wouldn't say I'm not sure pride is the issue. The thing that I'm most happy about with work is the community that we've built, both at CIO and now at institutional investor. It's really cool from where I stand when I can bring together a room of two hundred people, three hundred people, when I say I, it's Liana Or, it's Amy White, it's Julie Siegel, it's Cat Storfer here at II, it's all these people who help do it, but there's something hugely rewarding when you host an event, when you host allocators and asset managers and be able to bring them together. That's on one thing. There's one piece of journalism that I'm scared I'll never be able to top.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“And these books are amazing understanding of how power works, and that's influenced a lot of what I've done journalistically, the power one hundred. That came from the idea that power is important. What are you most proud of?”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“I was like a teenage girl meeting Taylor Swift outside our office Robert Carroll was walking, and all I could do was stand there. I followed him for a little bit because I was going to say something and then I froze again because I didn't know what I would say to him. And then he left and I was so disappointed of myself because he is my literary hero and I couldn't talk to him. But no, LBJ is a fascinating character.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“This is the easiest. I'm obsessed with Robert Carroll's biography of Lyndon Johnson. As I said, I'm Canadian. I don't think I knew who Lyndon Johnson was when I showed up to go to college in the States. And then eight years ago, someone handed me a book called The Power Broker. It's about Robert Moses, the man who built New York. And I liked it a lot. It was nerding out, but I knew that Robert Carroll, the author, had written another series on Lyndon Johnson, and I wanted to know why. Why would he, to me, he seemed like a minor president? He wasn't JFK, he wasn't Ronald Reagan. So I started reading it, and so the total book is like four thousand pages at this point. It's not done yet. It's over almost 35 years old since he started. And I've read it multiple times. I've been to Johnson's Ranch a couple weeks ago.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“I would have loved him in a rowing coach. I try coaching casually absolutely horrible at it. But one of the most important people in my life, he actually was the most important people in a lot of people's lives in finance. There's a guy named Harry Parker, who was the Harvard Roman coach for 53 years. He coached Bill Ackman, coached Reed Griffith, who runs Tetragon. He was a huge important part of our life. Part of me would love to just be the next Harry Parker, but I'm horrible at rowing coaching, sadly.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“My dairy says details He's a lawyer and he details matter to him. And if you ask my team now, that message has been seeped into what we do. I always say process. Journalism is a creative endeavor, but there needs to be a process to avoid being sued, to make sure something goes up on time, and so we're, you know, the details-oriented approach that my father taught me has stuck with me through my career.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“And then personally. I feel like my entire rowing career has been reduced if anyone's seen the Facebook movie That is the rowing scene in England That's my last college race So my entire rowing career has been reduced to being a teammate of the Winklevoss Facebook twins But I have a lot of good memories from rowing with a lot of guys who are now actually in finance private equity so I There's not one of them I like to pick out, but that's I have a lot of good memories of that”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“As a fan, I was ten years old, Joe Carter, Blue Jays, hits the home run, caveat that my power had gone out, I lived in slightly rural Canada, and so I was listening on a battery powered radio when I was eleven years old to Joe Carter hitting the home run.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“No, God, no. I lived in New York for eight years and recently got a house outside the city, and I am obsessed with building rock walls on the property. It's my true passion. And now driving around, I'm critiquing everyone else's rock walls. It's very much like one other trend in this industry, meditation. Fairly everyone meditates now on asset management. I don't meditate. I build rock walls. That is sort of my weekend activity. Excellent.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“And then it's not so much success on an individual level, but the industry needs more David Swenson's. He has trained how many twenty, thirty CIOs? Somewhere in there, and if not yet they will be eventually. There's some other people who really care about this, I think like Brian Pellegrino at UPS. This is something that Brid Harris cares a lot about. We need more of those people so that there's a talented pool coming up because there's no like CIO school, right? You'll get your CFA, but you and 200,000 other people this month will get your CFA. So the CIO schools are sort of like being a PM at a corporate fund or a public plan. And so there needs to be more mentorship, more swins and like mentorship in this industry.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“There's no doubt about it. I think we can all agree that's what's most important here. No, they're just going to be part of the crowd. It's the people who are willing to go out there and take intelligent risks and use those advantages. The ones that are...”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“I would go back to the things that we ranked as power. People who were willing to take risks, intelligent risks. You know, if you're going to just do what everyone else does, it's not that interesting for me editorially. And that should.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“They were saying that when I started covering this in as far as I can tell, consultants haven't lost an ioda of power. They're going to be here. And so I think firms should be asset allocators should be willing to pay for good consultants. Don't expect something for nothing. It's like everything else in life.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“Okay, I would say I'll say it then. Everyone shit talks consultants, but it's like lawyers. Everyone hates lawyers except their own lawyer. So everyone hates consultants, but not everyone has them, but a lot of people have consultants and a lot of people like them. There are some problems with the model. They have a buy list and they're going to choose off that bylist, but they have to scale their business somehow. They're not going to solve your problems for you. They're going to try and help you solve them. And I think there's a big quality difference in consultants. It's no secret who I think are really good at their jobs. You know, I think of NEPC, FEG increasingly. They're really forward-thinking firms and the individuals within them have a lot of vibrancy, and you speak to NEPC's clients, and they love them. And they love the individual consultant. But then people say, oh, the consulting industry is broken and it sucks.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“Going to arm that CIL with the material he needs to explain to his bosses why the fund X is down 5%. Bag client services when you just send the note saying we're down five percent. You get another letter and a quarter. That's bad. And so I think a lot of people think, well, they can log into the website and see where we're at. And our CEO, CIO, will send out a letter every quarter. They think that's good client service. And I mean, it's not even close to good client service.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“No asset manager thinks they're bad at client service, but when you pull asset owners, and we have formally pulled them, eighty percent of asset managers have poor client service. There's a huge disconnect in what they think. It's underinvested in because it's not a clear revenue environment, right? It's a cost in their balance sheet. And the smart asset managers know that it's a cost that you really should bear because it's a hedge in downtime. If asset manager X is down five percent, but they have great client service and that client service person is coming to them and saying here is what's going on if you have any further questions the CIO is available to speak to you, providing them with all the material that the CIO needs to go to speak to his board. So I call it arming the CIO. A chief investment officer at a pension fund has bosses too. And a good asset manager is...”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“There are some firms that do it extremely well, and I don't know, I'm not a client, but I talk to clients, and I mention a lot of them, NISA Investment Advisors. Corporate funds love their client service. Bridgewater has invested a ton in their client service, AQR, great client service. Now I think I wrote at one point like”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“But it's, I mean, we saw this with the endowments through the financial crisis. It's not like you can cut the budget so dramatically year over year. These things just have to move at a glacial pace. Yeah. It's tough.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“I mean, they're absolute idiocy. The accounting of you can quibble. It's not a five percent. It's not what corporate funds are told to do. But anyone who has an 8.25% target, all they're doing is gaming the accounting. And so this is when it's not as bad as some politics is everything in America. It's not as bad as people make it out to be. I hate when I see that public fund X has had a bad year. They're only up two percent. And so there's some think tank guy coming in and saying, this is criminal. We need to end this right now. He's using that one year return target as a weapon, just as when they're up 15%, you shouldn't turn around and say, problem solved. But I think you're seeing in some cases people are getting more realistic about those targets because 8.25%. The CIOs don't.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“I want to hit on a few things you've written about that are your perceptions that are different how things are commonly done so simple topics but I think worth talking about one is U.S. pension return targets”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“They're doing things that the Canadians are also doing. They have their own issues, you know, the currency play is hard for them. Like Canada, a country dependent on a lot of resource wealth, which creates its own issues. But they're always mentioned in the somewhat of the same breath as the Canadians.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“Smart guys, again, a really good system. If anyone's nailed the defined contribution system, they a couple years ago every employee had to put in nine percent. It's going to 12%, sort of required to go into the superannuation system. And they are very forward thinking. Are they mini Canadians? No, they're probably just, they're on par with the Canadians in what they're doing. They're partnering with the best asset managers. And you can always tell which asset managers are clever by the ones that invest a lot of time in Australia. Bridgewater was a very early player in that space because I think Radalio understood that these people were very sophisticated and there's money coming into this system and they need to put it to work. They've had some changes in their legislation. There's fewer of them. The government is encouraging them to merge. But when you ask people about the sharpest investors future fund, Aussie Super, Unisuper down.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“If you don't have to pay the asset manager and you can do it yourself and get the returns and not have to pay them the money, that's a good return for the ultimate beneficiaries who need that money to survive retirement. So I think will we get there with American public plans? I'm not sure in my career. Hopefully I still have 30 years doing this, but I'm not sure we'll get there. You'll see some... Success stories going back to a Britt Harris, they got a lot of leeway. They got Chris Aylman. If anyone's going to get there, it's going to be him. But that's a hard slog for those guys because of the political involvement that you see here, but not in Australia, not in Canada, not in Europe.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“Have the size like a Yale might not be able to do it, you know, 30 billion is big, but not that big. If they have the size going direct, you see it with one of the Firms with the best trajectory right now is Case de Depot. They were thought of in Canada, and we put on the cover of II, they were thought of as the dumb money for a long time. And this was 10 years ago, so I can say that because no one working there now will get better to me. But they were thought of as a dumb money, and now they are leaping over a lot of the ones they're doing direct investing, you know, they're partnering with Pando.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, a David Dennison or someone else working those funds can get paid $5 million and not get yelled at by a politician and have their pay cut. What that allows them to do is also be truly innovative. You know, it's now old, but I think of Canada pension plan joining with Silverlake and buying Skype and waiting it out for like six months. There are some legal issues and effectively doubling their investment in a year. They used Silver Lake as a partner, but they are so good and sophisticated they're cutting out the middleman in a lot of cases. Now, asset managers don't always love this. If they're truly exceptional like the Silver Lake, they benefit too because they're probably sourcing that deal and they know that Canada pension plan has all this money and they can move quickly and their sharp investors will understand what it's telling them. The next phase is once the governance is right.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“If I'm going to get $100 return, I only have to pay $10 for it. Yes, sign me up. But in the American political sphere, that actually is a problem. So the Canadians have really got that governance right. Talking to Ashby Monk, who's a columnist of ours, he's an advisor to UC regions, among other things, works with a ton of what we call giants, big pension plans. His view is that Canadians just trust their institutions more. Americans stop trusting their political institutions during the Vietnam War, and it's only gone downhill since. We never had that province canada, so we, Canadians are more understanding of setting up a system where”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“Called a Crown Corporation often where politicians have absolutely no say over their pay. We've seen it so many times when Teddyopoulos has to deal with California politicians trying to intrude on cowpers about stuff that us in the industry know is silly. It's not about what you pay for an asset manager. It's the value you get out of it.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“Again, I always have to say I'm Canadian. I'm not supporting the Canadian funds because I'm Canadian. Before I started, I had no idea Canada was any good at this. My parents, who I know my dad does, I think my mom gets the CPP pension plan. They had no understanding that CPP is one of not the most well respected allocator in the world. So I think what they really nailed is the governance. I started by talking about the pay of endowment managers getting high enough that they all spun out because they didn't want to deal with loud students and noisy alumni and annoying faculty. The Canadians really set up the model so they're paying market wages. They may not be able to pay as much as Goldman Sachs in Toronto, but they're pretty darn close. They also set it up so that pay doesn't, it's not one year thing, it's three or five year thing. They set it up at”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“One of the things that's been interesting about your seat is you interview CIOs and have interviewed and have relationships with CIOs all over the world. And certainly when David wrote his seminal work in whatever was 2000, the U.S. endowment model became kind of the new thing. You mentioned the Canadian pensions, and certainly there's an eye on the Canadian pensions. I'm curious where you think some of the best thinking is happening around the world and maybe some of the factors of that thinking that might be a little bit different from the U.S. CIO.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so there's these fads that go up and down, and I would say underlying that all is the people who are going to be successful going back are the people who are actually thinking long term are actually trying to use their size to almost bully the asset manager into giving them what they want, a true solution. Those are the people who's going to be successful and not the people who just try to emulate a David Swenson. Because even David Svensson says you're going to get shot in the foot at some point trying that.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“But there are these brilliant names, right? Like life insurance just being a great example. What you buy is death insurance. Turns out it doesn't sell quite as well. Exactly. Portable Alpha was a great one.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“That's a separate question. Again, very much ballparking. I'd say 30% of the asset managers actually changed the way they did business. The other 70% just pretended to change the way they do business. So solutions is that. Another smart beta, again, has sort of become a word. Every asset manager selling it has another name for it. And so we're always trying to sort through the BS to figure out what they're actually talking about.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“You can have a slice of sausage pizza, like whatever, you know, and that was catalyzed by the crisis. Now, whether or not that becomes a thing called solutions, or it's a shift in the mindset of the asset manager saying we now have to have a different relationship. That's a separate question.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“There's also a shift. There's been a shift in mindset that if you go back 10 years, maybe a little bit longer, asset management industry was selling you their product. It's like, we make this kind of pizza. There are eight slices, two of them are pepperoni, three are sausage, would you like it, if not, that's fine.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“And because it is marketing so often, there are, I would say there are people who truly provide solutions. I think of ANISA investment advisors who are just along now with legal and general really own the liability driven investing space in America. Jess Yawitz is almost a mythical figure to the corporate funds, and he deserves to be because he really changed that game. He's truly giving them a solution.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“Good enough friends that there was an asset manager in Boston who I went and I think I had a drink with him. He goes, I have some bad news. I said, what? He goes. My title has turned to director of solutions. And I said, you got to get bad change because it means nothing. It sounds like marketing.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, the all-time king is solutions. That absolutely meaningless term now. And it's been meaningless for five years. And I've had...”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“Why would you want to own lever bonds right now? We'll see. We'll see how that plays out. And then there's the one thing that really, and anyone who knows me even for 10 minutes in this industry knows I hate this, there's the over”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“And his view was that risk parity is a intellectually dishonest idea perpetuated by a bully. That was his take on it. So it really brings out a lot of risk. I won't name him either, but that's sort of the other side of the argument. And so it's really been accepted by people. And it's done fine. It's not fine.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“I love and hate risk parody. I should say that I am forever indebted to Bridgewater. Bridgewater were the first sponsor. Of CIO Magazine. And this was in the depths of the financial crisis. And they've been immensely good to me. And so I'm always biased towards them. And I understand my own bias there. But risk parity, obviously, they were a huge driver of it. And there's two camps in that. It has been wholly accepted by, I would say, I'm generalizing. American CIOs have really accepted that. Corporate funds. You be hard pressed to find a corporate fund without risk parity.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“No, and there's other things that pop up. So I've been covering this business since 2009. So any fad in those years that has happened, I've been on top of parity. Risk parody”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source
“And it worked for 20 years. Now, there's also a question of Yale didn't go buy the factors. They just said, we prefer these biases. We prefer these factors in the portfolio. And then they would go look for managers that were experts that happened to be covering those spaces. So you'd create the exposures bottom up. But does that work as much today? Well, who knows? And then you have the askness are not debate. Like, can you time factors? Can you not time factors? Nobody knows. Right.”
2017-08-07 · Capital Allocators · Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20) · IDENTIFIED FROM THE TRANSCRIPT · source