ALTERNATIVE INVESTOR INSTITUTE
Senior Delegates
Roundtable
February 4-6, 2014 The St. Regis Bahia Beach Puerto Rico
CREATING AND SUSTAINING EXCELLENCE
Introduction
This year’s program comes at a time of significant change to the
industry, including new SEC rules for hedge fund marketing,
increased global regulatory oversight and a highly competitive
environment for capital raising. The interplay of evolving
investor requirements and uncertain market conditions is
bringing continuing shifts in the marketplace for hedge funds and
alternative investments. Institutional investors’ hedge fund
allocations have increased five-fold since 2003, and they are
projected to continue growing rapidly. But some investors have
begun to rethink the risks and returns associated with these
investments. Moreover, investors continue to press managers
for greater transparency and customized fee arrangements.
How can alternative asset managers retain their entrepreneurial
spirit and deliver attractive returns while meeting the growing
litany of investor concerns? The roundtable will offer members
an important opportunity to share perspectives on industry
trends and developments and to explore sales and marketing
strategies that address the changing environment.
AQR Capital Management, LLC Erik Barefield
Mesirow Financial Douglas M. Blagdon S.A.C. Capital Advisors, L.P. James-Keith Brown
Och-Ziff Capital Management Michael Charlton
Anchorage Capital Group, LLC Shane Clifford
Permal Group, Inc. Graeme Daykin Magnitude Capital, LLC Anoop Dhakad MKP Capital Management, L.L.C. Elizabeth P. Ewing Carlson Capital, L.P. Lora J. Goldwater
Kingdon Capital Management, LLC Neal J. Howe
Barclays Funds & Advisory T. Michael Johnson Paulson & Co. Inc. Rob Joseph
Evanston Capital Management, LLC Cheryl B. King
Symphony Asset Management Wight Martindale
Solus Alternative Asset Management LP Thomas F. Meagher
Grosvenor Capital Management L.P. Doreen Mochrie
Perry Capital LLC Edward O'Reilly
Capula Investment Management US LP Susan Soh
Perella Weinberg Partners Thomas P. Sorbo
Tuesday, February 4, 2014
6:30- 8:30
Welcome Reception & Buffet on Plantation Estate Lawn
Wednesday, February 5, 2014
8:00 – 8:45
Breakfast & Registration
8:45 – 8:50
Welcome and Introductory Remarks
Robin Coffey, Director, Institutional Investor Memberships
8:50 – 9:35
The Influential Investor
–
How Investor Behavior is Redefining Performance
Faced with an investment climate characterized by continuing uncertainty, investors globally have re-examined many of their investment beliefs and practices. In particular, many have begun to redefine their performance objectives and rethink the rewards and risks they consider acceptable. Suzanne Duncan, head of the Center for Applied Research (CAR), an independent think tank that resides at State Street Corp., will present the results of The Center’s research on investor behavior and, explore whether investment managers are offering today’s investors what they really want. This research, which offers a ten-year outlook on the future of the investment management industry, is based on input from 3,300 industry participants across 68 countries.
Suzanne Duncan, Senior Vice President, Global Head of Research, State Street Corporation, Center for Applied Research
9:35 – 10:15
The State of the Industry
According to a recent report by Casey, Quirk & Associates, investors increasingly regard “alternative” investments— including private securities, hedging strategies, derivatives and innovative securities structures—as mainstream products reflecting the evolution of active asset management. As a result, alternative asset managers are increasingly competing with their long-only counterparts for larger core mandates. Sophisticated institutional investors, who once concentrated on seeking the right allocation between stocks and bonds, are increasingly focused on reducing correlations and
developing portfolios designed around desired outcomes. Meanwhile, a growing role is being assumed by, professional buyers will help further “democratize” the use of alternative products and hedge fund strategies by bringing in more mass-affluent and high-net-worth investors. Indeed, these market segments will represent most of the growth in alternative investments assets between now and 2017. This presentation will clarify the industry trends that managers need to know in order to meet the needs of clients and prospects.
Daniel Celeghin, Partner, Casey, Quirk & Associates LLC
10:15 – 10:45
Coffee Break
10:45 – 11:45
Innovative Products and Strategies to Meet Investors Demands
Institutional clients are placing more demands than ever upon the hedge fund and alternative markets. The need for bespoke products, combined with a requirement for optimal liquidity, have forced managers to develop products and strategies which leverage their core competencies yet avoid cannibalizing their traditional offerings. This drive to
innovate has resulted in a blending of hedge funds and long-only mandates. Are these products a panacea or merely a reflection of the soft long-only environment? Do the fees adequately reflect the resource allocation necessary? What are investors willing to give up to obtain optimal liquidity? What are firms doing to adapt to investor demands for greater transparency? How has this impacted operational due diligence requirements? How is branding and messaging affected? How will rising interest rates affect this convergence? What are the true opportunity costs? This panel will explore these and related issues.
Moderator: Daniel Celeghin, Partner, Casey, Quirk & Associates LLC Gregor Andrade, Ph.D, Principal, AQR Capital Management, LLC
James-Keith Brown, Head of Global Investor Relations, Executive Managing Director, Och-Ziff Capital Management Group
Suzanne Duncan, Senior Vice President, Global Head of Research, State Street Corporation, Center for Applied Research Bruce Ruehl, Partner, Head of Americas Advisory, Aksia LLC
11:45 –12:45
Discussion Groups: Marketing the Next Generation of Products and Strategies
Reflecting on the previous presentations and panel, roundtable delegates will be divided into small groups to discuss ways in which they are thinking about current industry trends and meeting client demands.
DISCUSSION GROUP LEADERS:
Group A:
Erik Barefield, Senior Managing Director, Mesirow Financial
Shane Clifford, EVP, Head of US Business Development, Permal Group, Inc.
Group B:
Wight Martindale, Executive Vice President, Director of Business Development, Solus Alternative Asset Management LP
Additional co-leaders to be announced
Group C:
Doreen Mochrie, Managing Partner, Global Head of Investor Relations, Perry Capital LLC Thomas P. Sorbo, CFA, Partner & Managing Director, Regiment Capital Advisors, LP
12:45–2:15
Lunch & Featured Speaker
Leadership- Make it Your Competitive Advantage
In this new reality of constant change and heightened competitive pressure, organizations have no "extra" people and no "free" time. So how do you maximize the people and time you do have? The answer is to empower everyone with the knowledge and skills to own their piece of their organization. Everyone in your organization is impacted by its
leadership, and in an ever adapting competitive environment leadership skills must be continuously developed. The days of the leader as the font of all knowledge are passé. What is needed today are organizations that can empower their teams and fully engage their minds and spirits and their minds in whatever they’re doing. Success requires everyone in the organization to help lead the organization.
Major Gen. Vinny Boles, USA (Ret.)
2:15-3:15
The Regulatory Environment: Maze/Minefield
The marketing of private products in the U.S. and Europe has become increasingly complicated as a result of a litany of regulatory changes. Managers take a wait-and-see stance over the recently enacted JOBS Act in the U.S. and they are
also seeking guidance on marketing of their products in Europe in accordance with the European Union’s ’s Alternative Investment Fund Managers Directive (AIFMD). What do these and other recently implemented regulations mean for the sales and marketing process? As regulators re-write the rulebook and lawyers parse the new framework, today’s hedge fund marketer needs to be more informed than ever before. This panel will provide the latest thinking on what a variety of new rules and regulations may mean for your firm.
Moderator: Harvey Shapiro, Senior Advisor, Euromoney Institutional Investor PLC Steven H. Bruce, Managing Partner, ASC Advisors
Marc E. Elovitz, Partner, Schulte Roth & Zabel LLP
Stuart J. Kaswell, Executive Vice President & Managing Director, General Counsel, Managed Funds Association
3:15 – 3:45
Coffee Break
3:45 – 4:45
The Art of Being Yourself; Psychology, Sales, and Client Service
Sales and client service professionals face a unique set of challenges. They must maintain a positive outlook on the business regardless of market conditions, present their offerings in a favorable light, and balance client needs with the needs of their organizations. Many in the business constantly feel pulled in different directions as they try to meet this broad set of expectations, and some find that over time it gets harder and harder to put on their “game face” every day. What happens when you need to be all things to all people? And what can be done about the toll that may be exacted by this process? The answer lies within. This session will focus on the psychology of “being yourself” and the notion that success comes when you understand who you really are, what you really want, and what you do naturally. Learn to leverage these insights in the service of your clients, your company, and your career. A tall order perhaps. This session will focus on what can make this possible and explore practical suggestions for meeting your own needs while meeting those of your clients and employer.
Jeffrey M. Fischer, Ph.D., Career Transition Coach & Founder of Core Career Coaching
4:45-5:45
Discussion Groups & Refreshments:
Client Service
Roundtable delegates will be divided into small groups to discuss client service, the models they have built and how this effort can be most effectively delivered.
DISCUSSION GROUP LEADERS:
Group A:
Michael Bernstein, Head of N. American Business Development, Lyxor Asset Management, Inc. T. Michael Johnson, Senior Vice President, Paulson & Co. Inc.
Group B:
Graeme Daykin, CFA, Partner, Magnitude Capital, LLC Chris Gates, Managing Director, Tricadia Capital Management
Group C:
Christopher Hedberg, Managing Director, CarVal Investors
7:00- 9:30
Cocktail Reception & Dinner on the Beach
Thursday, February 6, 2014
8:00 – 9:00Breakfast
9:00 – 9:05
Welcome and Introductory Remarks
Robin Coffey, Director, Institutional Investor Memberships
9:05 – 9:45
How to Market to Sovereign Wealth Funds
Scott E. Kalb, the former Chief Investment Officer and Deputy CEO of the Korea Investment Corp. (KIC), one of the world's foremost sovereign wealth funds, will provide a tutorial on what every manager needs to know about marketing to the sovereign wealth fund market. He currently heads the Sovereign Investor Institute, a think tank that brings together senior officials of sovereign wealth funds, other government investment funds and leading asset management firms to discuss investment strategies as well as governance and organizational issues.
Scott E. Kalb, Executive Director, Sovereign Investor Institute, Institutional Investor Memberships
9:45 – 10:45
Managing
“T
he Firm
”
Managers must attract, retain, and motivate top talent, but the hedge fund industry is highly volatile and the competition for talent is particularly fierce. Industry expert Jim Ware, CFA, author of “High Performing Investment Teams” (Wiley, 2006) will offer insights from his experience in consulting with hedge fund leaders. Among the issues he will explore include: Managing the big egos: getting the Michael Jordan’s to play “team” ball; continuous improvement: what does “deliberate practice” look like in the hedge fund world? The psychology of market winners: growth vs. fixed mindsets. Ware will provide tools and techniques for providing effective management in the hedge fund arena. James Ware, CFA, Founder, Focus Consulting Group
10:45 – 11:15
Coffee Break
11:15 – 11:45
Sales Organizational Effectiveness
As investor aspirations and requirements continue to change, asset managers are increasingly looking inward to see if their resources are appropriately aligned with the demands of the marketplace. What should today’s sales and
marketing team look like and how should it be compensated? In conjunction with Korn/Ferry, a global financial executive search consultancy, the Roundtable is once again surveying its members on compensation and organizational issues related to the sales and marketing functions. This session will draw upon the results of this survey to explore the attributes required for optimal organizational effectiveness.
Allison Walker, Senior Client Partner, Global Sector Leader, Hedge Fund, Korn/Ferry International
11:45 – 12:45
DISCUSSION GROUP LEADERS:
Group A:
Anoop Dhakad, CFA, Partner, Global Head of Marketing, MKP Capital Management, L.L.C. Christopher Hannon, Head of US Institutional, Lombard Odier Asset Management (USA) Corp.
Group B:
Carolyn Patton, CFA, Global Head of Client Service Relationships, Managing Director, Turner Investments Catherine Vaughn, Head of Business Development and Product Strategy, Hutchin Hill Capital, LP
12:45 – 1:30
