Calpers Culls External Managers in Portfolio Overhaul

The video discusses the challenges and strategies in managing a large investment portfolio, focusing on the importance of discipline in selecting strategies and managers. It highlights the shift from numerous external managers to specialized boutique managers in real estate, and debates the benefits of scale and diversification in private equity. The video also examines the tension between asset gathering and performance delivery, particularly for publicly traded asset managers, and concludes with a discussion on the successful performance of private equity portfolios over time.

What is one of the challenges mentioned in managing a large portfolio over time?

• Increasing the number of managers

• Staying disciplined and focusing on successful strategies

• Avoiding investment in private equity

• Reducing investment in real estate

What is a noted advantage of large private equity managers?

• They focus solely on one sector

• They have the ability to access opportunities across sectors and geographies

• They avoid diversification

• They only invest in real estate

What criticism do publicly traded alternative asset managers face?

• They focus too much on delivering returns

• They spend more time raising money than delivering performance

• They do not have shareholders

• They only invest in small firms

How have private equity portfolios performed over time compared to global equity portfolios?

• They have outperformed by 300-400 basis points

• They have not been compared

• They have underperformed by 300-400 basis points

• They have performed equally

What is a consequence of moving away from a successful business model in private equity?

• Increased number of managers

• Less diversification

• Potential loss of significant returns

• More focus on real estate