“Alternative Thinking About Investments” was the topic addressed by Mark Yusko, CEO and chief investment officer, Morgan Creek Capital Management, when he spoke at the annual conference of the Financial Planning Association of Massachusetts on May 7. Yusko’s wide-ranging talk was provocative and entertaining, with some great one-liners that became tweets that I quote below.
Alternatives deserve more attention
Yusko thinks investors should put more into alternative strategies. A small allocation simply cannot have a big enough impact.
This is a lesson that target date fund (TDF) managers should consider, suggested Ryan Alfred, co-founder and president of BrightScope, in response to my tweet. As he explained,
Going back to Yusko, he also suggested that your clients should have at least one-third of their assets in illiquid investments because such investments “win” after recessions. He’s assuming that your clients have plenty of money that they plan to pass on to others in their wills. Yusko didn’t specify which illiquid assets he was talking about.
Yusko isn’t fond of mainstream media. “Cancel your subscriptions to The Wall Street Journal and The New York Times. It’s all wrong, it’s all biased.” He used the example of the war between Russia and Georgia to make his case, mentioning that Morgan Creek pays someone to read Russian newspapers for them.
Yusko also spoke in favor of high fees. He seemed to suggest that fees rise along with the investment manager’s ability to deliver performance.
In closing, here is some Yusko humor.
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