Host: Amelia Bourdeau, Managing Director, Diamond Standard

Guest: Bill Kelly, President & CEO, Chartered Alternative Investment Analyst (“CAIA”) Association

William (Bill) Kelly has been a frequent industry speaker, writer, and commentator on alternative investment topics globally since taking the CAIA Association’s leadership role in 2014. Previously, Bill was CEO of Boston Partners and one of seven founding partners of the predecessor firm, Boston Partners Asset Management which, prior to a majority interest being sold to Robeco Group in Rotterdam in 2002, was an employee-owned firm. Bill’s career in the institutional asset management space spans 30+ years where he gained extensive managerial experience through successive CFO, COO and CEO roles.

Podcast Markers:

0:44 - Background on CAIA and Bill’s role

3:11 - Instead of saying the 60-40 portfolio is “dead’, Bill has a new take on the 60-40 portfolio.

6:02 - ALTS investment: differences in definition for retail vs institutional. For institutions, managers and strategy matter greatly.

8:53 - Discussion on the liquidity of ALTS investment

12:10 - Volatility and ALTS. Owner of an asset vs the trader of an asset - this should be taken into consideration.

15:15: Portfolio of the future. Home of capital formation and value creation is in the private markets. Active engagement - a more responsible investor. Operational alpha.

19:45 - Does having to look for operation alpha in ALTS mean investments are getting crowded?

24:10 - ALTS is rapidly evolving, where does that leave the individual investor re: democratization of ALTS? Discussion on introduction of 401k - how the responsibility of managing retirement funds shifted from the company to the individual when companies moved away from the pension system. Suggestion for a better solution.

28:01 - Tokenization of assets. Could that help with liquidity and access?

30:06 - Merging themes we discussed.

31:05 - How does the CAIA Association stay up to date?

Find Bill and CAIA Association: https://caia.org/

LinkedIn: https://www.linkedin.com/company/caia-association/

Twitter: https://twitter.com/CAIAAssociation

LinkedIn: https://www.linkedin.com/in/william-j-kelly-caia-ab50a947/

Twitter: https://twitter.com/CAIA_BillKelly

Find Diamond Standard: https://www.diamondstandard.co/

Sign up for market commentary: https://www.diamondstandard.co/market-commentary

LinkedIn: https://www.linkedin.com/company/diamondstandard/

Amelia LinkedIn: https://www.linkedin.com/in/ameliabourdeau/

Amelia Twitter: https://twitter.com/AmeliaBourdeau

Recorded May 1, 2023

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