Monetary Matters with Jack Farley Allocators Want What They Want | Andrew Beer on Pod Shops, “Volatility Laundering,” and Building Liquid Alts That Don’t Suck
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Dec 18, 2025 
In this engaging discussion, Andrew Beer, founder of DBI and an expert in liquid alternatives ETFs, reveals the quirks of institutional investment. He critiques how allocators prioritize career risk over returns, leading to flawed decision-making. Beer sheds light on the illusion of smooth returns in private assets that conceal volatility. He also highlights the success of multi-strategy 'pod' shops and introduces the QALT ETF, designed to provide efficient macro exposure while making alternatives accessible for advisors. Step into the wild world of hedge fund strategies and investment choices!
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Principal-Agent Drives Conservative Allocations
- Institutional allocators often prioritize career risk and appearance over pure economic optimization.
- This principal-agent dynamic drives safe, smooth-return choices over higher-return, volatile strategies.
Pension Board Obsession With Visible Drawdowns
- The New Jersey pension manager spent 40% of his time discussing a $50m Amaranth loss despite far larger, faster daily market moves.
- Institutional attention focuses on visible drawdowns, not routine volatility.
Design For Actual Allocator Behavior
- Focus on how allocators actually behave rather than how they should behave when building products.
- Design solutions that help allocators with their real incentives and constraints.