Jon Hirtle explains how his firm applies top-down strategy group asset allocation views across all client portfolios.
0:00 / 0:06exact quote · 6.0s
720p mp4 · rendered on demand · StarZero watermark
“So what happens is, if we're overweight emerging markets, which we happen to be today, Every client we have is overweight emerging markets.”
quote is from the automated transcript, cleaned for reading:
filler sounds and stutters are removed, nothing is rephrased. names can be misheard
(the analysis reads context, assessments check outside sources). how →
More from Jon Hirtle
AssertionSupported
Long/short equity managers are generally poor at shorting stocks
“Pretty good data out there that long, short managers, and I'm sure you know this, are good at picking stocks. Not as good at shorting stocks on average. Some are good, but not as good on average.”
Jon HirtleMay 6, 2019▶ 25:06Jon Hirtle – The Pioneer of OCIO (Capital Allocators, EP.98)
Insight
Investment committee governance decisions destroy massive value while chasing marginal alpha
“Everybody's had lots of decades of concentrating on why the small cap manager ought to beat the benchmark by 50 basis points. And yet, a lot of times, the governance decisions that are coming out of the committees are destroying massive amounts of value, and n…”
Jon HirtleMay 6, 2019▶ 50:25Jon Hirtle – The Pioneer of OCIO (Capital Allocators, EP.98)
Opinion
Applying ERISA-style pension rules to family and endowment management destroys value
“What I'm criticizing is misapplying it
Into family and endowment management, where we should like tracking error.
We should think about what you need to do to outperform, not shy away from it.
I guess that's my biggest pet peeve, is best practices that are act…”
Jon HirtleMay 6, 2019▶ 56:03Jon Hirtle – The Pioneer of OCIO (Capital Allocators, EP.98)
Insight
Dynamic asset allocation only works for avoiding once-a-decade market bubbles
“Where I am on that is that you can, if you are careful when you do it, and you respond to very strong signals. So it may happen once every 10 years, but if you can avoid a bubble by doing that dynamic asset allocation, it's hugely impactful”
Jon HirtleMay 6, 2019▶ 17:01Jon Hirtle – The Pioneer of OCIO (Capital Allocators, EP.98)
Opinion
The size factor is questionable compared to valuation, momentum, and quality
“We think there are some sustainable factors that add value, like valuation and momentum and quality. Size is a little more questionable, in our opinion, but we're still looking at factors all the time.”
Jon HirtleMay 6, 2019▶ 21:44Jon Hirtle – The Pioneer of OCIO (Capital Allocators, EP.98)
Opinion
Wall Street firms underappreciate OCIO by treating it as product distribution
“We think the whole OCIO concept has been underappreciated by Wall Street, because the big firms who are getting into the space see it as a distribution arm. You know, it's a label. They want to
Get more assets. Good. But we see it as actually this sea change …”
Jon HirtleMay 6, 2019▶ 51:45Jon Hirtle – The Pioneer of OCIO (Capital Allocators, EP.98)
Made with StarZero
Turn any episode into a week of clips.
This entire site, over 700 episodes transcribed, diarized, checked and made playable,
runs on the StarZero media pipeline. Drop in your own episode and the podcast clipper finds the
moments worth sharing, cuts them, captions them, and reframes them for every feed.
We use essential cookies to make the site work. With your permission we
also use analytics cookies (Google Analytics and Mixpanel) to understand
usage and improve StarZero. See our Cookie Policy.