Alaska Permanent Fund CIO Is Boosting Investments in Alternatives

The video discusses asset allocation strategies, focusing on hedge funds and private equity. It highlights the importance of market-neutral strategies, macro strategies, and event-driven investments in hedge funds. The speaker emphasizes the growth of private equity investments and the need for a balanced portfolio with fixed income and cash. Concerns about market cycles and valuations are addressed, with a focus on defensive strategies to mitigate risks.

What is the primary goal of maintaining a market-neutral portfolio with a 0 beta target?

• To focus solely on public equities

• To maximize short-term gains

• To minimize exposure to market risks

• To increase volatility

Why is there an emphasis on private markets in the asset allocation strategy?

• To reduce the number of public companies

• To earn a return premium

• To focus on short-term gains

• To avoid private equity investments

What is the expected increase in hedge fund allocation for the next year?

• From 4% to 5%

• From 5% to 6%

• From 6% to 7%

• From 7% to 8%

Which investment strategy is NOT mentioned as attractive in the transcript?

• Discretionary macro

• High-frequency trading

• Systematic macro

• Market neutral equities

What is one of the key strategies in private equity investments mentioned in the transcript?

• Investing only in public companies

• Focusing solely on distressed debt funds

• Avoiding co-investments

• Emphasizing co-investments and direct investments

What is a major concern regarding private equity valuations?

• They are lower than in 2007

• They exceed levels seen in 2007

• They are consistent with 2007 levels

• They are irrelevant to investment decisions

How does the speaker plan to prepare for a potential market downturn?

• By reducing cash holdings

• By overweighting fixed income and hedge funds

• By investing more in public equities

• By ignoring market signals