Druley: Portfolio risk tolerance is bounded by the client's time horizon
David Druley · David Druley – Structure into Action at Cambridge Associates (Capital Allocators, EP. 106) · Aug 19, 2019 · at 7:41
David Druley, CEO of Cambridge Associates, reflects on managing private client value equities during the late-1990s dot-com bubble when clients withdrew capital before value recovered.
0:00 / 0:10exact quote · 10.4s
720p mp4 · rendered on demand · StarZero watermark
“That said, I will say one of the main lessons I learned from that time is that your risk tolerance has to be the lesser of my risk tolerance in time horizon or the asset owners.”
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 David Druley
Druley: Only 100 to 200 hedge funds merit institutional capital
“What I would say is hedge funds is an asset class not worth the money. That said, there's seven, 8000 hedge funds. We think there's a hundred to 200 that actually do merit institutional capital and continue to merit institutional capital.”
Druley: Only a few percent of 10,000+ managers merit institutional capital
“We think about the 10,000 plus managers that are out there. There's a few percent that actually merit any of the capital of our clients and asset owners.”
Druley: Co-investments only generate strong returns within a manager's sweet spot
“And what they found out is that when you did co-invest with the managers we like, if you did it in their sweet spot, the sweet spot being either sector or industry expertise or size deal, that co-invest worked out very well. When you did the co-invest outside …”
Druley: Cambridge still finds significant active value-add in liquid equities
“We are still finding the ability to generate significant value add in the liquid markets, specifically the liquid equity markets. There's pockets of those markets which are harder to generate value add, but in the most part, we're still finding the ability to …”