Brad Briner - Family Office to Public Service (EP.413)
Oct 21, 2024
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Brad Briner, a seasoned investment strategist and leading candidate for Treasurer of North Carolina, discusses his vision for the state's $115 billion pension fund. He highlights the fund's poor performance, which ranks last among states, and the need for reform in governance and investment strategies. Drawing from his tenure at Michael Bloomberg's Willett Advisors, Brad emphasizes the importance of data-driven decisions and team collaboration. He also shares insights on navigating the political landscape and increasing voter engagement in the upcoming election.
Brad Briner's candidacy for North Carolina State Treasurer emphasizes his extensive investment experience and intention to improve the state's pension fund management.
The underperformance of North Carolina's pension fund is attributed to a conservative investment strategy that inadequately addresses current financial pressures.
Briner advocates for enhancing governance and accountability in investment decisions by fostering a collaborative approach rather than relying on a single fiduciary model.
Deep dives
Investment Experience and Aspirations
Brad Briner, with over 25 years in investment management, highlights his ambition to become the North Carolina State Treasurer, a role responsible for managing the state's $120 billion pension fund. His professional background includes notable positions such as co-chief investment officer at Willett Advisors, emphasizing his extensive experience in both public and private investment strategies. He shares that his interest in finance began in childhood when his family's financial struggles opened his eyes to the significance of money management. This upbringing, combined with formative experiences in his career, shaped his desire to improve the financial frameworks of North Carolina's pension system.
Challenges Facing North Carolina's Pension Fund
The North Carolina pension fund has recently struggled, finishing last among U.S. state pension funds in performance over the past three and five years. This underperformance is attributed to a conservative investment strategy that overly relies on government bonds, which has become untenable in a changing interest rate environment. As Brad points out, the pension fund's allocation strategy lacks the necessary boldness to achieve the required returns to meet pension obligations. He advocates for a paradigm shift towards a more balanced risk approach to investments, arguing that conservative management is insufficient for long-term sustainability.
Brad's Vision for Investment Reform
Briner's primary goal as treasurer, if elected, is to reshape North Carolina's investment team and strategy to enhance performance. He plans to build a competent investment team while advocating for legislative changes to shift away from the current sole fiduciary governance model, which he believes consolidates too much power in one individual. By suggesting a more collaborative decision-making process, Brad aims to ensure accountability and transparency in managing state assets. His focus on educating voters about the need for a more aggressive investment approach underscores his commitment to reforming the state’s financial future.
The Importance of Team and Governance Structure
Emphasizing the critical role of human capital in successful investment management, Briner highlights the need to recruit and retain talented professionals within the treasurer's office. He acknowledges the current team members' potential but stipulates that a reevaluation of the governance structure is necessary to create a more dynamic investment environment. Brad envisions a collaborative atmosphere where risking decisions are vetted through broader team discussions instead of relying solely on one person's judgment. Aligning compensation structures to attract talented professionals is essential to creating a more robust pension investment strategy.
Engaging North Carolina Voters
In a low-turnout election context, engaging voters is a challenge Briner is determined to address in his campaign. His strategy involves messaging that emphasizes his investment acumen, contrasting his extensive experience with that of his opponent, who lacks a similar financial background. Briner aims to connect with voters by using approachable communication, highlighting the tangible implications of pension management on constituents' lives, and asserting that effective governance leads to better returns for public employees. By focusing on qualifications rather than partisan politics, he hopes to gain support from a broader spectrum of the electorate.
Brad Briner is the leading candidate for the Treasurer of North Carolina in the upcoming November election, a role that includes managing the state’s $115 billion pension fund. Brad put himself in the ring for the seat after twenty-five years of investment experience, serving most recently as Co-CIO of Willett Advisors, Michael Bloomberg’s family office. For more background on Willett, my conversation from 2019 with Chairman Steve Rattner is replayed in the feed.
I don’t often get to talk about really poor investment performance on the podcast, but this time we do. North Carolina has finished dead last among peers over the last three and five years, that’s 50th of 50 states. Its twenty-year returns are almost equally dismal. This significant underperformance resulted from an overlay conservative asset allocation that will leave you shaking your head. Unfortunately, it’s what happens when unsophisticated professionals are tasked with serious investment jobs.
Our conversation covers Brad’s story, investment and leadership insights from his experience and time at Willett, the problems with North Carolina’s investing and governance, and Brad’s desire and plan to turn around the state’s pension performance.
I’ve known Brad for ten years and want to do everything I can to help him both win the important seat and succeed once there. So if you happen to live in North Carolina, please get out and vote – every vote truly counts in low turnout races like thisIf, like most of us, you don’t live there, please tell any friends you have who do live in the state. Lastly, if Brad is successful at the polls, he’ll need to build out a team with talented professionals who share his passion for investing and making a difference. Maybe you can help there too.
