The Ledger
Every statement that passed quotation and attribution checks. Mix any filter with any other: certainty 1/5, debate potential 5/5, or both at once.
why aren't all 11 resolved? a statement only gets an assessment when the public record can support or contradict it. opinions and what-ifs never can, and 0 checkable ones are still open, waiting for their date. predictions held up or didn't; assertions are supported or contradicted. on every card: ▮▮▮▮▮ certainty · ▮▮▮▮▮ debate potential. speakers are clickable
Therrien: Falling interest rates broke the traditional 2-and-20 hedge fund fee model
“The problem we've had in the last 15 years really is the whole rate structure fell, which brought sort of the two 20, not no longer the right fee structure.”
Therrien: CDPQ uses '1.5% or 15%' fee structures to capture more alpha
“From our standpoint, one of the variation that we brought, which is in parallel to what Luke said, was the fee structure, which is X or Y. So we pay 1.5 or 15%, depending, instead of 1.5 and 15%, which actually helps us capture the portion of the alpha that's …”
Therrien: CDPQ Moved Most Hedge Fund Allocations to Managed Accounts
“In order for us to be a better evaluator of talent, we have transitioned a big part of our program in edge funds onto managed account platforms.”
Therrien: True pension patience requires accepting underperformance during market speculation
“Patience in, in the context of a pension plan Is, is being able to sort of shy away from, you know, the fads, shy away from sort of the trends, the momentum that can build up into sectors, into some stocks. Patience also means what? Means underperform. Underpe…”
Therrien: CDPQ's deep bottom-up research is an investment superpower
“Which I think is, is a big change from the past where research was important, but today it's like, I think it's an edge. It's one of the superpower that we have, I believe.”
Terrien: CDPQ allocates to hedge funds through an unfunded overlay program
“For us, it became very important to calibrate well here because we have an overlay program. It's not a funded program. So we use our balance sheet to invest in hedge funds.”
Therrien: CDPQ's external manager program manages 45B CAD across 130 GPs
“Everything that we do at CDPQ with our external funds, which covers about forty five billion dollars Canadian, which is about close to 15% of total assets of CDPQ, and that covers about a 130 different GPs around the world.”
Therrien: CDPQ targets an absolute return slightly above 6% for clients
“Which for us, you know, we, we're, Targeting just a little north of six percent for our clients.”
Therrien: CDPQ partners with roughly 60 external managers across six strategies
“We work with about sixty-ish external managers in six different type of strategies, I would say, from hedge funds to value investing to relational investing to sovereign debt.”
Therrien: CDPQ's 19-person team manages $20B+ in external liquid assets
“Essentially, my role today is I run a group of 19 people, and we are in charge of all of the allocations within external managers. From long-only equity, emerging markets, edge funds, sovereign debt, so different types of strategies, everything that's involved…”