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Ranji Nagaswami

lines on the record: 78
first: 2017-09-28
most recent: 2017-09-28
sittings or episodes: 1
sources: podcast

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“That the only way to succeed in investing is playing the long game. Attempts to try and outwit the market in the short term or to time the market in the short term are very tempting but so flawed because you think you know something. When all you know is how much you don't know.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“And finally this notion of bill lasting relationships. I have found when I look back that yes, perhaps my technical skills knowing this, knowing math, knowing being able to synthesize information all served me well. But what has endured the thread that I can pull through is the lasting relationships, is taking the time to understand the people I am working with and to build those relationships, not networks. This is not a cynical view to using people to get ahead. It's really building relationships of trust where you can be yourself, where you can say that you were wrong, where you can ask people when you are stuck for help.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“And so be curious. Be prepared. There is just no substitute for walking in to a meeting, to a conversation with a client, to an analyst program without being prepared. And I really believe that people who think they can show up and someone will teach them stuff is just not the right attitude.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“Who So I have a millennial who just got into finance and of course she does not need my advice but the classic parent but I would say three things and by the way I love to talk to these groups particularly young women I say three things. First, be curious. Second, be prepared. And third, build lasting relationships. Be curious for me is living the questions. I think people who are intellectually curious about finance can find that there are so many ways. Use finance in society. And I love the way millennials appear to have this pretty keen social purpose linked to whatever they seem to want to do. Many, many do at any rate. I shouldn't characterize it.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“Really, for me, from a leadership perspective, in building a high performing partnership culture at Hurdle Callahan, I bring all of those values. I talk about my meditation practice with the entire firm to talk about the way I see human interaction and collaboration and why you asked me what I was reading now. I'm reading two books. I always read more than one book at a time, Hillbilly Elegy is one, but the other is sapiens, which I highly recommend to anybody. And this notion that Harari has in this book about, no, it's not our enterprising nature as humans that set us apart. It is our ability to collaborate. What an extraordinary way of thinking about why we have succeeded as a species.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“Look, I am a, I spent a lot of time with the finance leadership fellow. So I am co-chair of the Overseers Board. I'm a moderator at the Aspen Institute. So I really spend a lot of time with leaders in all walks of life at Aspen, helping them engage and think about their role in society. I am a meditator. For the last 10 years, I have deepened and built a meditation practice that really creates this self-awareness and this sense of how I engage and this notion that things are impermanent and things are interrelated.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“Maximized return and then use that maximized return for social good. And there are investors who want to express their desire for social good through their investing. Both of those things are legitimate in our point of view, but we hope to stand out as an institution that has found a way to identify productive uses of capital, in credit, in equities, which are not secondary to the return generation need that our clients have.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“From our family clients who are very interested in impact investing and really increasing the direct investment component of their socially conscious socially sensitive or sustainable investing to our faith-based institutions and our endowments and foundations. And so we have a very thoughtful way, we think, of building these portfolios. I will say that so far we have had more interest than actual commitment of capital. And our belief is not to be dogmatic, but to really meet our clients where they are on these issues. That's not a cop-out. That's simply saying that there are investors who would like to invest”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“Hopkins. And he is an adjunct professor at Yale and has really helped develop and encourage kids to think about social enterprise, which really is one of the many guises of impact investing. I have followed that part of the industry for a very long time. We have a growing and thriving thought leadership, ways of portfolio construction around sustainability, environment, social and governance issues. We have an increasing group of clients and prospective clients who are asking us about that.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“Full disclosure. My husband teaches the impact investing classes at Yale. And by the way, describing my mentors, I am married to my greatest mentor in the world. So I am... Talk about fortunate”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“For decades, and almost parallel path with the developments I just described, where finance. Has been used by the financiers for their own privilege, for their own profits, and not for society. And look, I am not a fundamental free market capitalist. I really believe in the power of capitalism and free markets to improve lives. But this has gone on for way too long, and the lack of transparency into fees, the lack of responsibility that many, many in finance feel to simply charging reasonable fees for what has been very average and mediocre performance by the industry as a whole. That would be the darker elements. But at its core, I think the changes have been positive and again come to the centrality of finance in society”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“So look, the last 30 years have seen these seismic shifts, and by far bringing more savers to be able to invest their capital in productive ways is the role that the asset management industry plays. I have to tell you that there's a dark side to the story too that worries me And that's something that Gerald Epstein at Columbia called financialization.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“into capital allocators at a very profoundly different level over the last 30 years. And so I think the fundamental role of the asset owner has changed. And I love to see the movement led by Keith Ambicshire in Canada and others across the Canadian European pension plan on sustainability, on finding ways of using the power of the purchasing power that they have to really think about the importance of investing in ways that ensure sustainability in society. So I'd say the role of the asset owner, the continued increase in capital formation and really Use of capital to more and more productive purposes in society. Financial inclusion, a tremendous, so this is the democratization of finance. And so fintech, tremendous shift.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“So I joined the industry in the mid 80s and venture capital, private equity, leveraged loans, private markets, private credit. These were all things that didn't exist. The disintermediation of capital, the disappearance of all the financial intermediaries has really turned asset owners into the”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“Good apprentice easily my favorite story. But on my bedside are two things that will never leave my bedside, the poetry of Mary Oliver. And Rilke's letters to Rilka's letters. And the most important part about what Rilka wrote, the motto of my life is Live the Questions. It's not about the answers. It's really the beginning of wisdom is knowing what questions to ask.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“But I would say that my readings for my finance fellowship about the role of finance in society once in Golconda, a must-read for any financial historian to understand how human behavior and the character of the people at the time shaped the finance industry. I would add to that my most favorite readings are in moral philosophy. Iris Murdoch is probably my most read, I have probably read more of her books than anybody else's. She's a British philosopher who really talks about the moral dilemmas and the need to live a fully examined life. And to look inward. Give us a title”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“So, you know, I have often said that if I wrote a book about my childhood, it would be titled My Mother's Favorite Refrain, Take Your Nose Out of that Book. So I have been a prolific reader all of my life. Work-wise, the most important books I have ever read on finance had to do with human behavior. So anything written by Kahneman, Tversky, really all of the books in Behavioral Economics, and there are new versions of them all the time.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“So it's not just Horizon and governance, it's also being willing to be different, being willing to be early to spend your life building relationships, following deeply what people do. David is a student of human nature. What's also not understood is David's extraordinary partnership with Dean Takahashi and his senior staff. All of those things to me are the things that I have taken away from my privileged friendship and relationship with the entire Yale staff and David Swanson.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“Without a doubt Lou and Gary Brinson, but I would also add David Swenson has played an extraordinary role in my thinking about time horizon, in my thinking about governance and the role, you know, one of the things, particularly as it relates both to our institutional as well as our family clients. Yes, there is alpha from your investment policy. Yes, there is alpha from manager selection. But people underestimate the role of governance and having the right agreement and the right shared thinking between an investment committee and your investment staff.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“Building Bernstein into the Juggernaut that it became in the two thousands, and to this day one of the most, I always want to know what Lou thinks about the world and capital markets.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“Gary Brinson, who came into my life in the mid 90s when Swiss Bank bought QBS and I started working with Brinson Partners, really driving from the equity side my valuation discipline, but bringing global asset allocation into my thinking and something that I began to participate in. But perhaps the most formative mentor for me, Lu Sanders at Bernstein. Lou has been a role model, a guide, a colleague, a friend, and his commitment to valuation and a value investment philosophy, I remember the stories told in 98 and 99 when some of our clients began to lose confidence. Remember, value was dead. And Lu said, listen, our clients believe we will simply need to. Understand how to manage a smaller firm. Never giving up on the valuation philosophy.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“But really coming to the business side of it, I have been extraordinarily privileged in finding seeking out and working with some very special mentors. Burt Malkiel was my faculty advisor at Yale and took an interest in me and guided me through”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“So I would always start with my dad, who every morning when he left for work looked at something in the newspaper and reminded me that we would be debating it tonight. And so I grew up debating my dad through high school and college about politics and current affairs.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“And so it's all of that which that arc traces, I think for me to Barry, is a value system. And the value system is really centered on confident humility. To have the confidence in oneself to achieve difficult things, to take on difficult things. But a fundamental humility with my background that would have made my success against all odds that to think that I could come from where I did to The success and to the engagement that I have today in the world. For me, it's that entire piece of the arc that is perhaps not as known.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, look, I guess the way I'd answer to that is the arc of my life, really from my roots, very humble beginnings on the dusty suburbs of a very industrialized town in India to the audacity of starting a world starting at a world-class business school at the age of 20. And I think to this date, being the youngest person ever admitted to the Yale School of Management, to really moving into my roles in the asset management industry, always marrying, by the way, something else people don't know about me is I spent 14 years as a classically trained dancer growing up in India. And from my perspective, the creative side of me, the conceptual creative side, married to a very hyper-rational pragmatic side, is really been the way I walk in the world that has made me different as a leader. As a thinker and as a doer.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“I'd put it this way there is a beta decision that needs to be made and that's our evaluation framework. But when we get into active management, whether in the public long-only space, hedge fund space or private equity, our research process is the same. It's really who are the people? What are their investment beliefs? What are their time tested ways of investing? And can we gain the confidence from our due diligence, our research, riding shotgun as these people drive around and make their investment decisions and look at their investments, understand how their investment committee works. So we get very granular into people and process at our managers, whether they're long only active or in the private markets. The beta process is what's different because that is really driven by our valuation framework, which is based on normalized earnings going into the future.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“Part of the market structure or a way of looking at the world. We don't want to pay overpay for that. What we really want to be able to isolate is that idiosyncratic skill. And then what we want to pay for is something that moves very differently than the rest of our portfolio. So the portfolio construction for us is deeply focused on what are the strategies that the underlying managers are employing to create value. And is that reliable, sustainable, consistent, then we are willing to invest. So it's a very high bar. It's a deep research process. And it truly is to end up with a portfolio where those illiquid buckets other than capturing the illiquidity risk premium also give us something that's very different. Then what we can do in public markets”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“Very fair statement. And so we do analytical work up front so that we don't pay for passive beta or what we call structural beta. Structural beta is, for example, merger arbitrage, where in fact you could have an entire basket where you go along the acquired company and short the acquiring company. That's structural beta. It's related to a certain”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“Look, the answer will depend on the five to ten year horizon that we see for each of these asset classes and what's going on.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“So we are completely aligned just as David Svensson would not get paid more or less if he was investing. Or not investing in hedge funds, as an example. So that's the model, and we are very pure in that way. But within these asset classes, we only invest in them to the extent that they are additive to what we can get cheaply in public markets beta. So by definition, the costs matter greatly because it's all net of fees that we care about. But the correlation to the rest of the portfolio becomes a very significant part of the exercise.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“There's no mark to market necessarily. And you can't get out. So we have to be, but once we've done all that, and that planning piece, by the way, is a huge part of what an outsourced CIO does, much as that's exactly what an internal chief investment officer would do. But once we get to that and we've decided on an allocation, first a couple of things about our business model. We are not a funder funds. We have no layers of fees. So we are building our sleeves, venture capital, private equity, hedge funds, not to make it available in the marketplace. No one can buy those services from us if they are not in our overall solution.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“So once we have the conversation with the client about the risk tolerance and their liquidity needs, it's very important to do the scenario analysis to say if we had a great financial crisis again, your illiquid portfolio will double because of the market reaction. So that was a lesson learned.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“Look, as I just said, Bridgewater is a singular culture and singular. Singular, and that is unlike, in other words, unlike anything else. And it is for the right person. It is a glorious firm. But I would say that for me, the principles that I've endured, including transparency and excellence, are really the hallmarks of my time there.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“Quite a statement. It really is quite a statement. And what I took away from my brief time there was really how to think about markets, how to think about risk. I fundamentally broadened and deepened my understanding of risk that are embedded in our portfolios and how people really ignore diversification from an environmental risk perspective to their own peril. But equally, I brought what I have brought to Hurdle Callahan and other endeavors is the culture piece. And the culture piece in its most benign form, which is transparency, employee engagement, and really focusing on excellence, how to keep getting better at getting better.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“First, that was a brief experience. And so not a place where I spent a lot of time. Bridgewater is a fascinating institution because first of how they think about markets and investing, this is one of the purest intellectual exercises in investing, I think, in the world.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“So we just announced our second class. We've been working on it for five years But this is one of the 15 fellowship programs at the Aspen Institute.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“In extending, yes, in extending the Henry Crown Fellowship or the Fellowship model at Aspen. To the finance industry, my project has really been to start this conversation”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“Conversation with John Hurdle. One of the real reasons we hit it off was because we both have spent our lives in his case building a highly successful business model outsourced chief investment officer really as an innovator and a pioneer in finance creating a model that never existed that puts the client at its center and brings our capability to the client. And in my case, I say giving speeches and creating this fellowship and hands down John wins because building a great business which stands the test of time and market cycles is by far a stronger way to make a statement. So this shared value about what finance can do in society is why a joined hurdle Callahan and why 95 of us in a suburb of Philadelphia today are really believing that this is the business model. For the future of the asset management industry.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“Financial ecosystem, savers of capital, users of capital, intermediaries, and stewards and the regulators in a conversation first about their personal leadership and their personal responsibility in whatever bully pulpit they have and whatever role they play. And these are highly successful people in their firms and in the industry. Coming together then in using a project to really define how they want to connect finance and society. Now this is about aspen and your question was about Aspen and this of course is my life's legacy. I consider this my elimosinary commitment. My husband and I are really committed to using this and believing and investing in this for the next 20 to 30 years, whatever it takes. But to come full circle with this to your earlier question about Hurdle Callahan, in my very first”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“But the key to your statement is everybody. We were all complacent. And the question we ask in the Aspen leadership program is, what about you? What are you going to do about this issue? And so follow on, and a few years later, it occurs to me that finance needs a group of leaders who will step up and accept responsibility for their role in reconnecting finance and society. And it is this set of values that leads me and a group of people at the Aspen Institute to founding something called the Aspen Finance Leaders Fellowship. We have just announced our second class of leaders. Every year we gather about 22 people around the table. So this is the long game. This is saying that in 10 years we'll have over 200 leaders in finance around the world selected from across the”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“Crisis to say, you know, yeah, yeah, yeah, Geithner and Bernanke were great, but they should have known. They created the roles that they looked the other way when finance began to fail. Where were the business leaders? Where were the leaders in finance who were saying, you know what, 30 to 1 leverage is pernicious to the system? And how can we put the entire system at this kind of risk?”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“And I was asked to come in and really help the administration think through this issue and as Mike said, fix set, which of course is easier said than done. But as I was sitting in an investment committee meeting and watching the administration at odds with the unions and the administration and the unions completely at odds with Wall Street, remember, two years following the great financial crisis, our city's pensions are at their lowest point. All of the risk that had been taken in this portfolio and equities had devastating effects for the funded status of the pension portfolios. What I recognized is that we needed to bring the ecosystem of finance into a conversation about the role of finance in society. And this was not something that I thought we should leave to our regulators. You know, it's very easy when we look back on the”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“sense of the word to actually take decisions and be a steward of my client's capital. So this began a journey for me now obviously over a dozen years ago into my leadership values, my leadership style. In 2010, I remember so clearly when I was sitting in Mayor Bloomberg's administration, as you have noted as his chief investment advisor in the third term of the Bloomberg Mayoralty. This role by the way in the Bloomberg administration was created to help the city with what had become an acute financial and budgetary crisis. Pension expenditure had gone from 1% of the budget to 12% of the budget, really crowding out investment in schools, roads, and healthcare and many other things.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“efficiency and community, what are the choices we make? How do you as a successful business person walk in the world? And I was nominated to this fellowship by the Dean of the Yale School of Management, a good friend in 2005. At a time when I was leading Alliance Bernstein's Mutual Fund Division through a transformation post, a pretty significant self-inflicted crisis at the firm or in that division of the firm. And I was brought in as part of a management team to help turn that division around. And as we confronted business practices, as we confronted our role with retail investors, who knows so little about the investments we were buying, all of the principles of what am I here to do as a leader? I'm here to actually be a fiduciary in its fullest.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“So Barry I was honored to be selected and nominated as an Aspen Fellow in the Henry Crown Fellowship Program at the Institute. Aspen really is an institute that was created in the aftermath of two world wars and the Great Depression to ask leaders in business what is your responsibility for building the good society And in the aftermath of all of that destruction, the question was quite simply where were the business leaders and what is the role of the private sector in really building and shaping the good society? So using readings that are time tested Socrates, Plato, Aristotle, Locke, Hume, we really get to fundamental notions of as leaders in society how do we trade off liberty and equality?”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“But today we really believe we are getting quite interested in the active managers who have been on their backs, all active managers have massively underperformed in the wake of the charging bull market. Now we are beginning to get interested. We think that in a market where there all stocks are highly correlated, you do not get paid for picking stock A or stock B. So now we are beginning as a firm to get more interested and active, but just bear in mind, we are agnostic. We do not come out with a point of view that you should only be passive or only be active.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“Yes, yes. A little bit of sympathy for the view, but not much sympathy for the journalism, journalistic excess that that implies. So let me step back and say the following We are agnostic. Passive, and there's a time and place for active today. We are very interested in active. So if you look at our US equity portfolios, 60% of our portfolios are some combination of passive and factor-based, which is near low cost, if you would, right?”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“So we did have a pretty significant view on commodities that we tempered in the middle of last year or in the fall of last year. So, we have held commodity stocks. We shifted from the commodities themselves to the stocks. And in our taxable client portfolios held MLPs. But we now have had a pretty negative view on energy overall for the last year. So we have gone back to neutral, although we still have about a 4% to 6% weight in those areas. In REITs, we were believers that that market was pretty fully valued, and so we have not been overweight REITs for quite some time.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“We have had a high yield and cash barbell on in our portfolios. Now, admittedly, the cash piece of this has been an expensive safety measure for our portfolios, and we've also held on to hedge funds. So we have been invested in a barbell in fixed income, thinking that as the Fed tightened the higher quality, particularly the treasuries would underperform. And that while that has begun to happen in the last year, over the course of the last three or four years, we have been cautiousness has allowed us, by the way, to also be overweighted in equities, which has worked in an overall sense for client portfolios. But we have been very reluctant investors and treasuries.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source
“When they were in denial, remember a guy who were flying over to Europe saying, you guys need to do this. And so late to the game, quantitative easing, now obviously the mantra around the world. So we seemed like our policymakers understood the depths of what we were dealing with and really opened up both the Fed's balance sheet, tried to get risk back into the markets. And today, 10 years later, we really have potentially the excess of that.”
2017-09-28 · Masters in Business · Ranji Nagaswami: The Outsourced Chief Investment Officer · IDENTIFIED FROM THE TRANSCRIPT · source