How have you been a change agent at
your organization? What are you particularly proud of?
I do not believe that a single person can
change an institution and expect a positive
outcome consistently without the support of
a wider group and the right catalyst. For us,
that was the launch of Hassana Investment
Company in 2014, which allowed us to start
with a blank sheet of paper; the addition of
several new elements to the existing investment team, specifically the CEO and the
Head of Alternative Investments; and finally,
the support we had from our board of directors. All of this allowed us to really build a
culture of accountability, ownership of decisions, thoughtful challenge to status quo
and intellectual curiosity. This new culture
is allowing us to be focused on long-term
capital creation and to make the right decisions in that time horizon. What I am proud
of most is my role over the past three years
in building and helping this new culture to
flourish along with everyone else.
What is the asset class or investment
that keeps you up at night, and why?
All of them; valuations overall are very high
compared to history. The source of this concern is, of course, the unclarity of how the
grand monetary experiment carried out by
the central banks globally will conclude, and
what the long-term results will be.
What methodologies have you adopted
within your institution?
Again, this a team effort here, but introduc-
ing a disciplined and objective approach to
how we perform our main function of evalu-
ating external managers. In addition, taking
the time we need to really understand the
external managers and engage them con-
tinuously through multiple interactions over
a relatively long period (sometime over one
year) to build our conviction in their ability
to manage capital successfully. Our goal is
to build partnerships with the external man-
agers which will stand the test of time and
continue for decades.
Where do you fall in the passive vs.
I believe there is a role for both in the portfolio, but as institutional investors, we need
to evolve our thinking of passive vs. active in
specific markets and think about which markets (public and private) are right for an active
strategy vs. a passive strategy. We also need
to adapt as new information comes to light as
that preference may change over time.
What are the changes you’d like to see
the institutional investing community
make in 10 years?
Thinking about long-term SAA, performance measurement, and risk management
from holistic portfolio perspective instead
of thinking from an asset class silos perspective. In other words, how the whole should
work vs. aggregating smaller portfolios
Who is a manager you don’t currently
work with whose brain you’d like to pick?
Hani A. Al-Jehani
Manager-Alternative Investments, Hassana
Investment Company (Riyadh, Saudi Arabia)
This is a difficult question to answer, but if
I am forced to choose, it will be the whole
senior management of Bridgewater.
Ideally, where would that meeting take
Over lunch or dinner.
What is the software investment tool
that helps you most?
Excel and access to data.
What would improve the relationship
between you and managers?
Being a good listener and humble; this
applies to both sides.
Why did you choose your current path?
I learn new things every day, which is exciting. Plus, I get the chance to meet with the
titans of the industry.
A stand-out example of a modern allocator with
significant responsibility at a cornerstone organization
that has tremendous significance, both in the region