New Mexico PERA

“So based on the gross alpha that a manager can generate, we're trying to get to 60 to 70% capture ratio of that gross.”

“So we actually end up being a hundred percent external.”

“I think when marketers say, you know, you kind of got to act now, right? Like, oh, we're, our closing is, July first, and if you don't do it then, you won't get this, and I don't like act now. That doesn't sit well with me.”

“So what our governance looks like today is our board makes three decisions. They set our overall risk tolerance, they approve our risk budget as what I've been talking about, and they set benchmarks. Everything else gets delegated down to staff. So the manager…”

“What we're looking at is in our beta book, we're looking to incorporate embedded leverage in the asset classes and then about in a very modest amount, which is about 10% at the total asset allocation level. So we think we can get somewhere around a six percent…”

“We view private assets as not asset classes. We view the private assets as another way to access active management or alpha.”

“And then, so in alpha space, we'll say, you know what, in addition to the risk we're taking in asset allocation space or beta, we want to take up to another two percent tracking error relative to that beta that we're taking. And up to that additional two perce…”

“We're buying market neutral hedge funds because on a risk adjusted basis, hedge funds are still pound for pound the best alpha generators.”