Christy Hamilton, Head of Investments at Children's Health, explains how hospital capital project debt and balance sheet requirements drive higher fixed income allocations.
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“Being a hospital, one of the things that we kind of go through in the enterprise review is we issue debt for capital projects, so, you know, that's actually really important because these assets back up in a lot of instances the debt issuance, and so we typically have more fixed income.”
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More from Christy Hamilton
PredictionNot checkable as stated
Hamilton: Heavy Inflows into Private Equity Will Lead to Disappointing Returns
“In a world where there is so much money going into private equity right now, I mean, obviously, inflows of capital lead to price discovery, which collapses these kind of informational edges that a lot of people have built, so I do think that there are a lot of…”
Christy HamiltonMar 9, 2020▶ 19:31Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124)
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“What kind of society are we if we, like, shut him out, or somehow think that, you know, we can't invest with him or his team just because of his views? I just, I find that to be completely ridiculous. I mean, obviously, if he laundered money, right, you can't,…”
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Insight
Hamilton: Portfolio allocators should be generalists, not asset class specialists
“A lot of people think that you have to specialize now, and I actually think the opposite. How can you pick investments in one part of your portfolio without understanding what's going on in other parts?”
Christy HamiltonMar 9, 2020▶ 7:24Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124)
Insight
Hamilton: Portfolio construction must start with governance, not manager selection
“And I have gotten raked over the coals a couple of times because people are like, why would you say that governance is the most important thing? And I'm like, guys, how can you build a portfolio without starting with governance? So it starts with an enterprise…”
Christy HamiltonMar 9, 2020▶ 14:44Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124)
Insight
Hamilton: The endowment model only fits institutions with substantial distribution needs
“It's hard to generalize institutions because so many people talk about the endowment model and forget that it really isn't for everybody. There are a lot of institutions that outsourcing it or indexing it is actually a really great option. It's for a specific …”
Christy HamiltonMar 9, 2020▶ 17:01Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124)
Insight
Hamilton: Pure deflation-hedging in fixed income destroys capital long term
“20% target to fixed income is all of that pure deflation hedging. It's not, I can tell you, because it would be nearly impossible to build a portfolio like that without destroying capital long term.”
Christy HamiltonMar 9, 2020▶ 18:15Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124)
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