Demystifying Alternative Investing
benefit in certain environments, while
others will struggle. There is a need to
demysti...
For more information please send an email to info@marcusevanscy.com or visit the
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Demystifying Alternative Investing - Interview: Jonathan Mandle, Corrum Capital Management LLC, Private Wealth Management Summit 2014

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For more information contact: emailus@marcusevans.com

An interview with Jonathan Mandle of Corrum Capital Management LLC, an alternative investment manager at the marcus evans Private Wealth Management Summit Fall 2013 and US Pensions Summit 2014 shares his advice on investing successfully in the alternatives space.

Join the 2014 Private Wealth Management Summit along with leading regional investors in an intimate environment for a highly focused discussion on the latest investment strategies in the market.

For more information contact: emailus@marcusevans.com

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Transcript of "Demystifying Alternative Investing - Interview: Jonathan Mandle, Corrum Capital Management LLC, Private Wealth Management Summit 2014 "

  1. 1. Demystifying Alternative Investing benefit in certain environments, while others will struggle. There is a need to demystify the term “alternatives” and gain a deeper understanding of assets at the root level. Interview with: Jonathan Mandle, Partner and Head of Absolute Return and Credit Strategies, Corrum Capital Management LLC “For many investors, the alternative investments space used to be viewed as a magic solution that delivered great risk-adjusted returns in all market environments. However, the financial crisis made many people skeptical of alte r na tiv e s , and r ig ht f ully s o . Alternatives can be very beneficial to a portfolio, but they need to be assessed on their risk/return profile with a forward-looking view, and an understanding of how they will interact within the total portfolio,” Jonathan Mandle, Partner and Head of Absolute Return and Credit Strategies, Corrum Capital Management LLC recalls. According to him, the core issue is that investors should, “understand why they are investing in specific assets, what role they will play in their investment portfolio and how they will help meet their ultimate objectives”. Corrum Capital Management LLC is an alternative investment manager at the marcus evans Private Wealth Management Summit Fall 2013 and the US Pensions Summit 2014. Why do alternative asset classes trouble many investors? Why is there a need to “uncomplicate” alternatives and how can it be done? There is a lot of undue complexity in this space. Alternatives have historically been viewed as a vague, catch-all classification, but in reality there are a plethora of strategies, each with unique drivers of returns. Some strategies will The core components of an investment must be broken down to understand return drivers, risks, favorable and unfavorable environments, correlations, and so on. Only then can investors determine the best way to access an investment and the most efficient structure that would help minimize risks and cost, while maximizing control and returns. A portfolio that combines a variety of uncorrelated strategies and assets with diverse return drivers maximizes the probability of achieving investment objectives and attractive risk-adjusted returns over time. What role can alternatives play in a portfolio? How should they be incorporated? A well-constructed portfolio provides exposure to as many return drivers as possible. A traditional portfolio of stocks and bonds provides exposure to factors including GDP, industry and global growth, earnings multiple expansion, interest rate directionality and credit spreads. Alternatives expose a portfolio to other factors, such as fundamental dispersion in credit and equity markets, global capital flows, bid-ask spreads, liquidity premiums, hard asset values, and smaller, newer, less commoditized, and potentially less efficient markets. Adding alternatives to a traditional portfolio increases diversification and gives investors the opportunity to produce consistent returns in a variety of markets. However, for optimal results it is important to focus on strategic portfolio construction and thoughtfully lay out the role of each investment from the beginning. Which assets potential? Why? hold the most There are two areas we are most excited about: real assets/natural resources and alternative credit and yield generating opportunities. In real assets, the most attractive space in the US is oil and natural gas. We have invested in some credit strategies that provide lending to small and midmarket companies that need working capital to take the business to the next level. Energy infrastructure is interesting as so much will need to be built to extract, produce and bring these energy sources to the global market. We are also looking at power, agriculture, metals and mining, water, and recently invested in a new pot ash development. Having a higher constant source of income can help protect purchasing power from a rise in inflation and interest rates, which is one of the reasons these asset classes are particularly interesting for institutional investors and high net worth individuals. Any final thoughts? Investors must understand the assets they own and how each strategy fits into their portfolio. They should assume that every manager they hire is average and be pleasantly surprised if they outperform their mandate. That will make their portfolio robust and less reliant on the chance of superstar managers adding alpha. Alpha is scarce, inconsistent and should be considered upside not a core reason for making an investment. Investors must know exactly what they own
  2. 2. For more information please send an email to info@marcusevanscy.com or visit the event websites below: The Investment Network – marcus evans Summits group Private Wealth Management Summit Fall 2013: delivers peer-to-peer information www.privatewealthsummit.com on strategic matters, professional trends and breakthrough innovations. US Pensions Summit 2014: www.uspensions-summit.com Contact Please note that the Summit is a closed number business of event participants and the strictly limited. Sarin Kouyoumdjian-Gurunlian, Press Manager, marcus evans, Summits Division Tel: Email: + 357 22 849 313 press@marcusevanscy.com For more information please send an email to info@marcusevanscy.com All rights reserved. The above content may be republished or reproduced. Kindly inform us by sending an email to press@marcusevanscy.com About Corrum Capital Management LLC Corrum Capital Management is a 100% employee owned, alternative investment manager with over $3 billion in assets under management and advisement. Our experienced team focuses on identifying investment themes with the potential to provide multiyear, dynamic investment opportunities. We then build investment portfolios to best take advantage of those opportunities and achieve client objectives. We offer fund-of-funds vehicles and bespoke portfolios in the following asset classes: Credit (Public & Private), Small- to Middle-Market Private Equity, Real Assets, and Hedge Fund strategies. www.corrumcapital.com About marcus evans Summits marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, case studies, roundtables and one-on-one business meetings. For more information, please visit: www.marcusevans.com Upcoming Events Elite Summit (Europe) - www.elitesummit.com Foundations & Endowments Summit - www.foundations-endowmentssummit.com To view the web version of this interview, please click here: www.investmentseries.com/Jonathan_Mandle

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