risk management

“And then I guarantee you in three or five years, people won't be that worried about stuff like that anymore.”

“Is there diversity on the board? Again, not because it's the right thing to do, because it's the right business thing to do. It leads to better risk management. It leads to better capital allocation.”

“So, so if you can't really measure where you are in terms of risk, And that means you can't really manage it. What you would tend to do, and a lot of organizations tend to do, is err on the side of less risk.”

“Career-wise, in the running of the various strategies that we have run over the years, the mistakes that I have made, which I regret, have Almost all of them probably being related to unwinding strategies in the drawdown. Then you say, okay, what is the mistak…”

“I always remember like in big drawdowns, like in March after the COVID was starting to happen, the March drawdown, you want to make sure your manager is sitting back up on their chair and looking at their screen rather than under their desk, and so I'm always …”

“One risk plus another risk is not just the equivalent of two risks, but it compounds.”

“We're not seeing systemic problems with private equity. There are very few that go bust. And I think not just because of the corporate veil point, but I think also just the way their own risk management is set up. It's inherently very conservative.”

“A lot of people out there in our business think about the average endowment portfolio should have 10% standard deviation around its annual returns, 10% volatility budget, which makes no sense, because what happens when markets go down, volatility goes up, all …”

“What it shifts from is not so much catastrophic risk, not so much existential risk, Run on the bank type risks. It turns into more, how do you most efficiently use risk, most efficiently deploy it?”

“I view it as the reason you're cutting risk in a time of stress is it might get worse. So you're trying to hedge. The bad news is you're locking in a bunch of losses. And you're paying a bunch of transaction costs. The good news is, when things settle down, wh…”

“It's my sincere belief that human capital work is risk management disguised as empathy.”

“One crisis after the other, as I've evolved over the years, it's become where top-down is a risk management tool, and we use it heavily. It's a switch off, not switch on. It should help you reduce risk, but not add risk. In other words, if Chinese growth is go…”

“My biggest investment pet peeve is when people focus only on the investments themselves. They forget that that's just one third the job. Most of the alpha in the business of investing, I believe, comes from portfolio management and from risk management. These …”

“We're looking at that separately from our day-to-day expectations of how the returns are going to correlate, because if we only look at those stress scenarios, we won't take enough risk on the day-to-day.”