Ashby Monk – Total Portfolio Approach and the Future of Asset Owners (EP.480)

You need to understand the total portfolio. Every new investment that comes into the portfolio, you're thinking about the overall risk budget, liquidity needs, all these goals that every pension fund has. TPA begins to think about this not just as an asset allocation project. The word TPA to me feels more like an investor identity project. TPA is the next level of advanced. It implies that you have all of this real time stuff at your fingertips that you can think about. This piece of knowledge that's being delivered to the investment committee, is that knowledge better than this other knowledge? And then you can act on that knowledge. Well, some knowledge is gonna be, we've found a manager that does x. Over on the other side, it's we've got an ETF that does y. Now it's the CIO's job to recommend which to do. Finding a way of looking at those different opportunities with apples to apples is really valuable. I'm Ted Sides, and this is Capital Allocators. My guest on today's show is doctor Ashby Monk, the executive and research director of the Stanford Research Initiative on long term investment. Over the last two decades, Ashby has worked closely with some of the world's largest sovereign wealth funds and pension funds on governance, organizational design, technology, and investment strategy. He's also a cofounder of KDX Management, a venture capital firm focused on Investec, a cofounder of several startups in the space, and a repeat past guest on the show. His first and most recent appearances are replayed in the feed. Our conversation explores the increasingly popular total portfolio approach, Ashby's perspective on the role of AI and data in the investment office of the future, including his work with Hoopit AI, a very cool relationship intelligence platform, and examples of innovation at Saudi Arabia's Public Investment Fund and the New Mexico State Investment Council. Before we get going, as we turn the calendar on the new year, past guest Katie Milkman reminds us that it's a wonderful time for a fresh start to form new and improved habits. And start small, like the atomic habits James Clear has made so popular. I am gonna stop responding to emails prolifically while I travel. My team confirmed that I'm both inefficient when doing so, and in a rush to get answers that might do more harm than good. So I'll stop, slow down the decision, and write a funny out of office reminder instead. In the event you're struggling to find a New Year's resolution, how about telling someone you encounter about the award winning Capital Allocators podcast? It's true, we've won some awards along the way, but don't worry about that. It sounds really impressive, and you'll sound culturally plugged in for mentioning it. If you do that repeatedly over the next few weeks, you'll form a positive new habit and get in our good graces as we look to expand this year. So you'll have that going …