Everything Derek Drummond said on any show that made the record, most notable first. Each card names its show and opens the statement there.
Pensions mistakenly incentivized hedge funds to lower volatility and gather assets
“The average hedge fund out there, down the fairway hedge fund, us dumb pensions did the wrong thing by incentivizing them to run lower vol and take in more assets and collect that management fee.”
Multi-managers are raising day-one external SMA tickets to $400 million
“This space is getting more competitive. Now, the big platforms are allocating external managers. Getting access to that next talent coming out the door is getting a little bit harder. Getting a separate account for a hundred million dollars on day one, they're…”
Managed accounts cut SWIB's diligence timeline from months to weeks
“Our typical write-up is about 40 pages plus and probably takes us Three months to get a deal done in our main hedge fund portfolio. Here, if we find somebody we really like, we could probably get three, four weeks, a 10 to 15 page write-up, and it's much more …”
SWIB uses a 17-manager managed account platform as a talent incubator
“We came up with this heuristic, so we have 17 PMs, and we're managing like it's a portfolio, but if we get confidence in that manager enough, they can graduate and become their own line item in our hedge fund portfolio. As we get more and more confidence, we c…”
Almost all portfolio managers prefer identical terms over custom institutional mandates
“And in 99.9% of the cases, the PM doesn't want to do anything special. They want everyone to be on the same terms and the same strategy.”
SWIB's hedge fund portfolio uses $10 billion in internal financing
“I'm the biggest consumer of the fleet rate at SWIB right now, and I borrow a 10, eleven billion dollars.”
SWIB runs roughly half its assets internally and half externally
“Here at the state of Wisconsin, we run about half of our assets internally and then half of our assets externally.”
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