Illiquid Assets
topic on 3 shows · 7 statements across 6 episodes
Capital Allocators 
All-In 
20VC
7 statements about Illiquid Assets, every show
Tenev: Blockchain's top value is democratizing illiquid assets
“The most powerful thing is taking inaccessible, illiquid assets and making them available.”
Tenev: Tokenization will make private companies, real estate, and art accessible to retail
“The use case that's going to be very powerful even within the US where we actually have decent access through Robinhood and other things to US stocks is illiquid assets that Actually have not been successfully made tradable or accessible to retail like private…”
Illiquid assets, small caps, and equities will outperform long-term
“We believe over long periods of time, Illiquid's going to outperform liquid. Small's going to outperform large. Equities are going to outperform fixed income.”
HESTA currently targets an approximately 30% allocation to illiquid assets
“We currently target around 30% in illiquid assets.”
HESTA stress-tests liquidity to keep illiquid assets below a 40% cap
“But assuming that those couldn't be traded, we do different scenarios and try and make sure that we're not breaching 40%.”
Long-lockup illiquid assets offer rich and repeatable alpha
“So when we think at the very top, we're thinking about illiquid assets, 10 to 12 year lockups, and that's a big, thick icing on the top. There's lots of alpha there. Lots of manager value added because it's an illiquid market. It's idiosyncratic. It takes spec…”
Therrien: Illiquid assets reduce optical risk and daily mark-to-market panic
“Investing more money in illiquid assets also mitigates sort of the optical risk, if you like. Because, you know, these assets are not revalued every day, so I think that I mean, at the end, I think that's also important, because why people behave in a certain …”