Capital Allocators – Inside the Institutional Investment Industry

Dave Breazzano, Head of the Credit Team at Polen Capital, brings over 40 years of experience in high-yield investing. He shares the fascinating evolution of the high-yield market since the 1980s. Dave demystifies common myths about high-yield bonds, revealing lower default rates and valuable strategies for resilient investments. He discusses the impact of rising interest rates on private credit and the importance of adaptability in changing markets. Personal experiences in history and travel also shape his unique perspective on risk in finance.

Jase Auby, Chief Investment Officer for the Teacher Retirement System of Texas, manages a $200 billion pension fund supporting over two million educators. He shares insights from his journey from Wall Street to public pensions, emphasizing the significance of risk management in investment strategies. Auby discusses Texas's unique position in energy investments and the importance of blending quantitative and qualitative insights for decision-making. He also highlights challenges like talent retention and the evolving landscape of asset management, showcasing his impact as a thought leader.

Discover the secrets behind private equity's significant impact on the investment landscape. The discussion unravels common misconceptions, emphasizing the realities of operational strategies and stakeholder engagement. Success stories, like the acquisition of CHI Overhead Doors by KKR, showcase how value is created. The conversation also challenges myths surrounding dividend extraction and explores the complexities of return smoothing and the influence of interest rates on investment outcomes.

David Eichhorn, CEO of NISA, boasts over 25 years in the asset management game, specializing in risk-controlled fixed income. He shares lessons from his childhood entrepreneurship and highlights the shift to client-centric strategies in finance. The discussion delves into challenges in U.S. retirement funding, specifically corporate benefits and pension plans. Eichhorn also navigates the complex landscape of private credit, stressing the importance of risk management and the innovative 'micro battles' approach to client communication.

Michael Mervosh, Executive Director of the Hero's Journey Foundation and recently retired partner at a multi-billion dollar equity manager, shares insightful life lessons rooted in personal development. He discusses the transformative experiences offered through the Hero's Journey program and the significance of self-discovery amid fear and perfectionism. Set against the backdrop of West Virginia's mountains, Mervosh emphasizes the shift from individualism to community, urging listeners to embrace uncertainty and cultivate meaningful connections for growth.

Roz Hewsenian, former CIO of the Helmsley Trust, and Joshua Fenton, the new CIO, share insights from their successful leadership transition. They discuss Roz's well-planned retirement strategy and the importance of preparing a successor well in advance. Joshua recounts the conversations and changes that shaped his new role. They emphasize lessons on succession planning, mentorship, and the value of diverse team dynamics in investment management, providing practical takeaways for future transitions in the industry.

Roz Hewsenian, Chief Investment Officer of the Helmsley Charitable Trust and a former consultant for CalPERS, shares her extensive experience in investment management. She discusses the art of opportunistic-based allocation, theme identification in healthcare and technology, and the importance of governance. Roz highlights her leadership philosophy shaped by diverse communication experiences and reflects on the challenges of managing investment manager decisions. The conversation also touches on the necessity of balancing creativity with policy adherence in due diligence and navigating global market complexities.

Join Sarah Samuels, Partner and Head of Investment Management Research at NEPC, as she tackles the crucial topic of succession planning in investment firms. She introduces an insightful framework that analyzes succession as an investment risk, focusing on performance, age, and economics. The conversation evolves into the emotional and economic complexities of transitioning leadership, highlighting both successful strategies and potential pitfalls. With a keen eye on mentorship, Samuels emphasizes the importance of grooming future talent for sustainable investment practices.

In this engaging discussion, Sarah Samuels, Head of Investment Manager Research at NEPC, shares her unique journey through various institutional investing landscapes. She dives into the importance of blending qualitative and quantitative strategies, the complexities of managing a $1.5 trillion portfolio, and the art of distinguishing skill from luck in investments. Sarah also emphasizes alignment of interests and her commitment to diversity through initiatives like Girls Who Invest, while navigating the evolving private markets and healthcare opportunities.

Todd Simkin, Associate Director at Susquehanna International Group and CEO of Susquehanna Re, shares insights from his 27-year journey in trading. He discusses the evolution of trading from poker roots to modern strategies, embracing both the art and science of decision-making. Topics include risk management, navigating growth within large firms, and the fascinating intersection of sports betting and trading strategies. He also reflects on the importance of talent recruitment and meaningful life lessons learned along the way.