How a Retirement Fund CIO Uses Hedge Funds

The video discusses the role of hedge funds in a portfolio, emphasizing their use for diversification rather than outperforming equities. It highlights the challenges of managing a large portfolio and the need to rationalize hedge fund investments by negotiating fees and ensuring they meet return targets. The video also explores the active vs passive management debate, noting that while most large-cap equities are passively managed, there are opportunities for active management, especially outside the US.

What factors does the speaker consider when deciding between active and passive management?

What percentage of the equity portfolio is passive versus active according to the speaker?