Scott Kalb: How Sovereign Wealth Funds select external managers for alternative investments

Hedge Funds
by trusted insight posted 9years ago 9995 views
From Opalesque TV Korea's Sovereign Wealth Fund, the Korea Investment Corporation (KIC), is a global investment management company, established in 2005 by the Korean government to manage part of the country's foreign exchange reserves and other public funds. Scott Kalb recently completed his term as Chief Investment Officer and Deputy CEO of KIC. In this Opalesque.TV BACKSTAGE interview, shot literally backstage at the SALT Asia conference in Singapore, Scott talks about: *"You get asked": how to become the CIO of a SWF * How SWF select external managers for alternative investments: Process, Preferences, Partnership * The role of hedge funds and alternatives in a SWF portfolio * When would a SWF redeem from a hedge fund? * When not to invest in hedge funds - examples of red flags to look out for * Structural issues in the hedge fund industry SWFs take issue with: - Taking performance fees on unrealized gains - Why High Watermarks don't solve the problem * Trends within SWFs: - towards disintermediation - cooperation with each other - co-investments * How important is liquidity for SWFs? * Can a SWFs' investment also have political motives? * What is a SWF really? * A SWF's challenge: Doing longterm investments under external short-term pressures * "The term is done": Why has Scott Kalb left the KIC & the future Korea's Sovereign Wealth Fund, the Korea Investment Corporation (KIC), was launched to protect and grow sovereign wealth for future generations as well as to help the development of the financial industry in Korea. As of mid 2012, KIC's asset reportedly reached $50bn. Mr Kalb joined KIC in April 2009 with more than 25 years of international experience in asset management and research. Prior to his position at KIC, he was Senior Portfolio Manager at Balyasny Asset Management (BAM) during 2006-2008. Before BAM, he served as CEO and Senior Portfolio Manager at Black Arrow Capital Management - a firm that Mr. Kalb helped co-found in 2002- and which was later merged into BAM. From 1999 to 2002, he was Vice-President and Senior Equity Portfolio Manager at Tudor Investment Corp. From 1990 to 1999, he was with Citigroup, where he served as Managing Director Smith Barney International Asset Management (1995-1999) and Head of International Equity Research for Salomon Smith Barney (1990-1995). Earlier in his career, Mr. Kalb served as economic consultant at Korea's Economic Planning Board and the Ministry of Finance from 1984 to 1986.=