Insight certainty 4/5 debate potential 3/5

Garcia: Private assets are active management vehicles, not distinct asset classes

Dominic Garcia · Dominic Garcia – Risk-based Investing at New Mexico PERA (Capital Allocators, EP.187) · Apr 5, 2021 · at 26:31

Dominic Garcia, Chief Investment Officer of New Mexico PERA, discusses how the public pension fund approaches asset allocation and active management across private markets.

0:00 / 0:08exact quote · 8.7s
720p mp4 · rendered on demand · StarZero watermark
“We view private assets as not asset classes. We view the private assets as another way to access active management or alpha.”

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 Dominic Garcia

Prediction Not checkable as stated
Garcia: Bitcoin will drop to its underlying tech value without government backing
“If governments are not going to embrace it honestly, it should go down to just the technology value of it.”
Dominic Garcia Apr 5, 2021 ▶ 49:21 Dominic Garcia – Risk-based Investing at New Mexico PERA (Capital Allocators, EP.187)
Prediction Partly held up
Garcia: PERA targets 7.25% return using 10% beta leverage and 1% alpha
“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…”
Dominic Garcia Apr 5, 2021 ▶ 22:56 Dominic Garcia – Risk-based Investing at New Mexico PERA (Capital Allocators, EP.187)
Insight
Garcia: Private equity should be evaluated for PME spread, not headline IRR
“The reason why you buy private equity isn't for the total return, in my view, it's the relative return to your PME, because a private equity portfolio or private equity management, let me just give you an example. Let's say they generate a 12% IR. Well, if you…”
Dominic Garcia Apr 5, 2021 ▶ 44:36 Dominic Garcia – Risk-based Investing at New Mexico PERA (Capital Allocators, EP.187)
Opinion
Garcia: Hedge funds are pound-for-pound the best risk-adjusted alpha generators
“We're buying market neutral hedge funds because on a risk adjusted basis, hedge funds are still pound for pound the best alpha generators.”
Dominic Garcia Apr 5, 2021 ▶ 27:30 Dominic Garcia – Risk-based Investing at New Mexico PERA (Capital Allocators, EP.187)
Opinion
Garcia: SWIB is a best-in-class public pension in the US and globally
“First of all, I think SWIB is a best-in-class public pension on a number of fronts here in the United States, and I think even globally.”
Dominic Garcia Apr 5, 2021 ▶ 9:58 Dominic Garcia – Risk-based Investing at New Mexico PERA (Capital Allocators, EP.187)
Insight
Garcia: Institutional investors are risk allocators first, not capital allocators
“And I think some of the best things that I learned was portfolio construction and understanding that we're not capital allocators. We're actually risk allocators first.”
Dominic Garcia Apr 5, 2021 ▶ 11:28 Dominic Garcia – Risk-based Investing at New Mexico PERA (Capital Allocators, EP.187)
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.