Capital Allocators – Inside the Institutional Investment Industry

Lane MacDonald, CIO at SCS Financial and former Harvard allocator and U.S. Olympic hockey player, reflects on teamwork and alignment from sport to investing. He discusses domain expertise, picking the right sectors, co-investing mechanics, and building a team-oriented platform. Short, sharp takes on measuring managers, structuring co-invests, and why SCS leans into private markets and alignment.

Nick Rohatyn, founder and CEO of The Rohatyn Group, dives into emerging markets investing with insight drawn from his rich background in global finance. He shares lessons from his upbringing and his transformative years at J.P. Morgan, highlighting the importance of diversified, multi-asset strategies. Nick critiques emerging market benchmarks, advocating for smarter, benchmark-agnostic solutions. He discusses leveraging acquisitions for growth and emphasizes the necessity of cultural understanding in investment success. With an eye on the future, he outlines his vision for TRG's expanded role in the evolving landscape.

Scott Kleinman, Co-President of Apollo Asset Management, shares insights from his journey since joining the firm as its 13th employee in 1996. He discusses Apollo's evolution into an integrated alternatives platform and the importance of excess return per unit of risk. Kleinman explains how the 2008 crisis reshaped their strategies, highlighting the significance of private credit. He emphasizes that origination, not capital, limits growth, and shares leadership lessons on communication and culture within the firm. Kleinman also explores the future of private assets and the convergence of public and private markets.

Dr. Ashby Monk, Executive and Research Director of the Stanford Research Initiative on Long-Term Investing, shares insights on the Total Portfolio Approach (TPA) for asset owners. He discusses the evolution of governance to integrate technology and data in investment strategies. Ashby highlights how AI can tailor investment advice to individual goals and improve decision-making. He also explores innovative practices at Saudi Arabia's Public Investment Fund and New Mexico State Investment Council, emphasizing the synergy between performance and developmental impact.

Dr. Ashby Monk, Executive and Research Director at Stanford's Long-Term Investing initiative, dives into the nuances of investor identity and its impact on returns. He explores the crucial role of technology in asset management, advocating for innovation to enhance decision-making. Monk also critiques current ESG ratings, urging a shift towards detailed data over summary scores. The discussion covers how understanding submergence—both drawdown and recovery—can improve long-term resilience in portfolios, ultimately steering institutional investors toward smarter strategies.

Ashby Monk, an Executive and Research Director at Stanford's Global Projects Center, dives into innovative solutions for pension and sovereign fund challenges. He explores the contrasting pension models of Canada, Australia, and the U.S., emphasizing the importance of transparency in fees and internal management. Ashby discusses his groundbreaking venture, Long Game, which gamifies saving through prize-linked incentives. He also predicts an increasing reliance on private equity and critiques hedge funds for their talent allocation, advocating for more sustainable financial practices.

In this engaging discussion, Mike Gitlin, CEO of Capital Group and seasoned asset management executive, explores the firm's unique culture and strategic vision as it approaches its centennial. He shares insights on talent development, highlighting low attrition rates and a robust mentoring system that fosters long-term investor growth. Gitlin also discusses innovative compensation models tied to performance, the integration of AI in research processes, and the strategic pillars guiding Capital Group through evolving market demands and client expectations.

Howard Marks, co-founder of Oaktree Capital Management and renowned for his insightful investor memos, dives into the evolution of credit markets and the risks associated with private credit. He reveals valuable lessons from past market experiences, emphasizing the importance of valuation. Marks also shares insights into Oaktree's disciplined investment philosophy and highlights the current landscape's challenges, including soft underwriting standards and the impacts of rising rates on private equity. Reflecting on investor psychology, he stresses the necessity of adapting through cycles.

In this discussion, Ian Charles, a founding partner at Arctos Partners, shares his journey in private equity and sports ownership. He explores the complexities of private equity firms and how Arctos employs a data-driven approach to tackle industry challenges. Ian highlights current market dynamics, like fundraising pressures and the need for LPs to adapt. He also introduces a ten-level framework to categorize firms and discusses the importance of talent and scale in navigating the evolving landscape.

Tim Sullivan, a pioneering executive from Yale's Investments Office, shares wisdom from nearly four decades leading private equity and venture investments. He discusses Yale's unique approach to the private markets and the advantages of top venture firms. Tim reflects on critical moments like the 1987 market crash and the dot-com era, emphasizing the importance of operational talent and deal sourcing. He warns of the challenges facing private equity's future and offers insights on institutional allocations and the evolving landscape of venture capital.