Operational Leaders

Outsourced trading isn't new. Twenty years ago, Scott Chace and his business partner, Robert Fleming, co-founded CF Global Trading. The firm has since grown into one of the leading outsourced trading solutions for institutional asset managers.

In this episode, Scott talks about the origins of outsourced trading, and why its appeal has grown in recent years. He also looks at trends in the business, provides thoughts on what managers should consider when looking for an outsourced trading firm and explores some of the advantages of the outsource trading model.

To learn more about Scott and CF Global, please see the company's website.

Josh Barlow spent over twelve years at PAAMCO where he led Operational Due Diligence and Accounting. This experience reinforced his view on the importance of fund governance and the value of independent directors who can deliver both oversight and practical guidance. In 2018, Josh left PAAMCO to become the founder of Valhalla Fiduciary, a consulting firm whose core service is to provide independent non-executive directorships within the asset management industry.

In this episode, Josh discusses the circumstances that led him to create Valhalla Fiduciary. He also discusses the role of the independent director, including topics such as why the role exists, how it can add value to both investors and to fund managers, and the skill sets that can make an independent director effective. In addition, Josh talks about the impact of the coronavirus, and provides some concluding throughs on the future of the asset management industry.

For more information about Josh Barlow and Valhalla Fiduciary, please visit the firm's website.

As firms grow and counterparties multiply, the job of tracking and managing cash, collateral and other aspects of treasury becomes increasingly challenging – and critical. Paul Calderone, the Chief Operating Officer at Hazeltree, joins this week's episode to discuss treasury management for alternative investment firms.

With over 30 years of experience in the alternative space, Paul has gained a unique perspective on treasury management and technology. He shares his experience in this episode, including the importance of aggregating data to have an accurate understanding of cash, portfolio finance and capital usage. Paul also discusses how firms might optimize their processes, as well as the possibility of deriving alpha from efficient deployment of assets. He also talks about significant industry trends, such as automation and outsourcing, and offers a few thoughts about the future.

For more information about Paul and Hazeltree, please visit the company website.

One day, we'll all be able to get together again, maybe at some sunny tropical location to attend a top industry conference. When we do, Cosimo Montagu, Editor and Organizer of the GAIM Ops event series, will be ready.

In this episode, Cosimo provides a behind-the-scenes look into what it takes to pull off one of the top conferences in the investment management industry. Planning starts up to six months in advance, with endless hours of coordinating, hundreds of calls with the industry's top professionals, and countless revisions to the agenda. Cosimo discusses topic selections, logistics, speaker invitations and how audience members can get to most out of their attendance. He also shares some personal experiences about what its like on the day of the conference.

For more information about Cosimo Montagu and the next GAIM conference - rescheduled for the end of September - please see the GAIM Ops website.

Insurance can be a world unto itself, with It's own language, all sorts of different players and multiple types of coverages. Kimberly Patlis Walsh, President and Managing Director at Corporate Risk Solutions, has spent the better part of her 20+ year career helping investment management clients navigate the insurance landscape.

In this episode, Kim talks about the role of Corporate Risk Solutions as an independent advisor and explains the range of different market participants from brokers to insurers to re-insurers. She also discusses the types of coverages typically obtained by investment management firms. Kim concludes with some concrete suggestions on what investment firms should be doing now in response to the Coronavirus and how the virus might impact the insurance marketplace going forward.

For more information about Kim and Credit Risk Solutions, please visit the company website.

Compliance veteran Fizza Khan started Silver Regulatory Associates in 2018. As CEO of a now ten-person firm, Fizza saw an opportunity to establish a consultancy that capitalized on her compliance experience and her views on the best model for delivering compliance advice.

In this episode, Fizza discusses the impact of Coronavirus on her firm and on the compliance function generally, including how her firm and her clients are overcoming the challenges of social distancing. She also shares her thoughts more broadly on how compliance consultants can add value at different points in an investment firm's growth. Fizza also offers advice on setting expectations to maximize the consultant/client relationship.

For more information about Fizza Khan and Silver Regulatory Associates, please visit the firm's website.

Outsourcing back office functions has been a growing trend in the investment management field. The coronavirus pandemic will likely accelerate that trend. 2912 Advisors sits at the top of a new generation of outsourcing firms, providing a high-quality, high-touch option with the added benefits of operating remotely and creating functional redundancy.

Brian Shanly, co-founder of 2912 Advisors, joins this episode to talk about outsourcing. In our interview – originally conducted in early February – Brian covers a variety of topics, including the efficiency afforded by outsourcing, services typically provided, when it makes sense to outsource, and the future of the outsourcing model. He also discusses why he prefers the term "external office."

To learn more about Brian Shanly and 2912 Advisors, please visit the company's website.

Jack Inglis leads the alternative investment industry's top international trade association, with around 2,000 corporate members in more than 60 countries. Jack spent 25 years in a variety of senior executive roles throughout the alternatives business before becoming the CEO at AIMA in 2014.

Jack joins the Operational Leaders podcast to discuss what it means to be an industry association and the importance of fostering collaboration, peer-group interactions and best practices. He also gives his views on issues such as the need for operational excellence, the impact of margin compression, and the moderation of Investors' expectations regarding returns.

For more information about the Alternative Investment Management Association and some excellent industry resources, please visit the AIMA website.

Leader and innovator, Monel Amin, saw a problem and set out to fix it. The due diligence process of exchanging information between allocators and managers was manually intensive, administratively burdensome and most importantly, a two-sided problem. Together with her team of experts, Monel created DiligenceVault, the first two-sided digital diligence platform for investment managers, asset owners and allocators.

In this episode, Monel describes the events that lead to the creation of DiligenceVault, as well as some of the product's key features and functionality. She then discusses more broadly the impact of technology on the investment management industry and the InvestTech ecosystem. Monel also shares a number of insights on future developments, including her expectation that broad-based client solutions will arise from partnerships and alliances among technology firms, each specializing in their own areas of core competence.

To learn more about Monel Amin and DiligenceVault, please visit the company's website.

William J. "Bill" Kelly is the CEO of the Chartered Alternative Investment Analyst Association ("CAIA"). Formed in 2002, the CAIA Association has 12,000 members worldwide, 31+ CAIA chapters and sponsors over 250 events annually. Its Charter designation has become the globally-recognized credential for professionals managing, analyzing, distributing, or regulating alternative investments.

In this episode, Bill covers a wide-range of issues involving the current state of the alternatives industry and its future. He discusses topics such as asset growth, the benefits of understanding portfolio construction and risk metrics, the challenges of accessing the private markets (particularly for retail investors who need to manage their own retirement accounts), and the importance of achieving operational alpha with the advent of digital tools and machine learning. He also discusses ESG and the need to find solutions that require all people – not just allocators and managers – to feel a bit more inconvenienced.

For more information about Bill Kelly and the CAIA Association, please visit the CAIA Association website.