Capital Allocators – Inside the Institutional Investment Industry Sam Sicilia – Seizing on a Long Time Horizon at HostPlus (EP.103)
Jul 1, 2019
Sam Sicilia, the Chief Investment Officer of HostPlus, shares insights from his extensive background in academia and global finance. He discusses the advantages of a long-term investing horizon and the critical role of infrastructure in mitigating risks. Sicilia highlights the importance of ethical stewardship in asset management and the growing appeal of private equity and venture capital in Australia. He also emphasizes building strong relationships with fund managers and critiques the overreliance on quantitative models in investment decisions.
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HostPlus's Early Investment Approach
- In 2007, HostPlus had no internal investment staff and relied on the Chairman and CEO for investment decisions.
- The board recognized the need for expertise and hired Sam Sicilia in 2008.
Long-Term Investment Strategy
- HostPlus's target demographic is young people in the hospitality sector, resulting in long time horizons.
- This allows them to capitalize on equity risk premiums and illiquidity premiums.
Balancing Long-Term and Short-Term Goals
- Balance long-term focus with short-term considerations by prioritizing risk-adjusted returns and diversification.
- Ensure your board understands and supports this approach to avoid short-term pressures.