Wealth Actually EP.64 BRINGING INSTITUTIONAL THINKING TO INDIVIDUAL INVESTING with GEORGE HUBBARD
In this episode of “Wealth Actually”, I speak with George Hubbard. George is the Managing Partner and Chief Investment Officer of Algonquin Advisors, a Registered Investment Adviser that focusses on large families, foundations, endowments and other pools of money. He and his firm bring a unique approach to family investment management that uses tried and true institutional principles.
Pay special attention to our discussion around alternative assets and the role of the asset class for family investments. George also talks about bringing “trustee” principles to investment implementation.
And in honor of the U.S. Open at Winged Foot, we talk about what his dream foursome would be and where it would be played.
Introduction
What are the differences between institutional investment thinking and HNW thinking?
Taxation Issues
Time horizons
Liquidity needs (Yale model)
Return expectations
Access/Deal Flow
Position sizing
“Real” Due Diligence (how much time/resources should one expect to expend in researching a manager/deal?)
The power of concentration to build wealth
Where alternatives fit in asset allocation
Function of
Alternatives
Diversification
Other types of risk the traditional investor is missing?
The ultimate importance of having the private equity portion of a portfolio fund future vintages out of current private equity distributions. (While this is obvious in the institutional world, this kind of thinking is largely absent from most advice to investors who are “sold” private equity!).
What can be borrowed
from institutional processes to help Individuals make fewer rookie
mistakes?
Starting at the Beginning: The Investment Policy Statement and The Asset Allocation
The Importance of a “Forensic Review”
What comprises a “Forensic Review”?
The Importance of “Intentional” Investment Decisions
How should a trustee think about these things in a true “fiduciary” capacity?
Importance of cash management, lock-ups, multiple time horizons, multiple beneficiaries, multiple interests
What are the Alternative Asset Classes that investors are focussing on now?
-Private Equity (LBO,
Venture)
-Private Credit
-Hedge Funds /
derivatives
-Managed Futures
-Commodities
-Real Estate
-Infrastructure
-Collectibles
-Insurance
T21 and the Importance of Getting the Right People into Fiduciary Roles for Families
George’s Golf Dream Foursome
How do we keep track of George and the firms?
GHUBBARD@ALGADV.COM
GHUBBARD@T21TRUSTEES.COM