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.

One of the most powerful stories on the Street. For a few insider trades and about $46,000 in personal profits, Tom Hardin threw away his bright future as an investment analyst. The FBI tracked him down and tapped his shoulder. Facing inevitable felony charges, Tom became "Tipper X," the government's most productive cooperating witness in Operation Perfect Hedge, a sting set up by the federal government in 2007-2008 targeting the hedge fund industry. In this episode, Tom recounts his decision to engage in insider trading and its consequence. He then goes on to discuss his life in the ten years since that time and how he has travelled the world to share his cautionary tale. He also observes how the current economic environment could foster similar mistakes. Tom is now one of the most sought-after speakers in the investment management industry. For more information about Tom Hardin and potential speaking engagements, please visit his website, Tipper X.

Steve Bruce has been referred to as the Dean of Alternative Fund Strategic Communications. For 40 years, he has helped some of the top hedge funds and private equity firms navigate the tricky waters of public relations. And in 2010, he co-founded his own public relations firm, ASC Advisors. In this episode, Steve talks about some of the key public relations issues facing alternative fund managers – from start-ups to firms with over $100 million in AUM. He also describes some of the historical events that helped shape manager attitudes about public relations. In addition, Steve discusses the importance of branding and industry trends. In particular, Steve highlights the emergence of ESG as a critical consideration for all managers and his firm's recent initiative to begin offering a specialized ESG communications service. To learn more about Steve Bruce and ASC Advisors, please visit their website.

Where passion, enthusiasm and executive skills combine with the fund administration business, you will find Des Johnson, CE0 of Centaur Fund Services USA. Des has over 20 years of experience in the investment fund industry holding top positions at some of the industry's leading fund administrators in Ireland, Bermuda and the United States. In this episode, Des recounts the history of the fund administration business, from offshore funds and the "ten commandments" to the Madoff-era scandals and investors' insistence on an independent service provider. He also points out the pitfalls in commoditizing the business and the importance of customizing client services. In addition, Des discusses the need to innovate and respond to client needs, as well as where he sees the industry heading in the future. To learn more about Des Johnson and Centaur Fund Services, please visit their website.

One of the industry's true Renaissance People. Author. Speaker. Partner at Kirkland & Ellis. And former Director of the SEC's Division of Investment Management. In this episode, Norm Champ discusses his latest book, Mastering Money. He talks about how his time at the SEC helped inspire the book and shape his views on achieving financial security. Norm also talks about how his career path led to the SEC, some of the challenges of working for a government agency and his accomplishment at the Commission. He also discusses his law practice in the years since leaving the SEC and offers up some sage advice for industry participants dealing with the SEC staff. To learn more about Norm Champ, his books and potential speaking engagements, please visit his website.

Ten years ago, Andrea Colabella and her business partner, Steve Shapiro, set out to start their own executive search firm, the Cardea Group. They focused their efforts on the operational and infrastructure side of the investment management business. Now Andrea is one of the up and coming leaders in the executive search field. In this interview, Andrea talks jobs – where they are and how firms can find the right candidates. She also discusses some of the challenges of starting and building a business. Along the way, she offers up some important tips and reminders, and describes what makes a great candidate. She also talks about the ability of individuals to transition from one part of the industry to another. To learn more about Andrea Colabella and her business, please visit the Cardea Group website

Michael Merrigan officially starts season one of Operational Leaders with a discussion on operational due diligence. Michael is a rising star in the business with 20 years of experience and the founder of Shadmoor Advisors, an independent ODD consulting firm he established in 2014. Michael covers a broad range of topics including a discussion about the evolution of ODD from operations to a more wholistic review of enterprise risk. He also provides his view on the ODD evaluation deliverable - an assessment of the risks and related market color which individual investors should then use to make their own independent determinations. Michael also notes that some managers can underestimate how several smaller risks can prove more problematic than one large risk. To learn more about Michael Merrigan and his business, please visit the Shadmoor Advisors website.

John Brennan kicks off the Operational Leaders podcast series with a discussion about information technology and the role of the Chief Technology Officer. John is a 25-year industry veteran and most recently spent nearly 10 years as the Chief Technology Officer at Highfields Capital. In this episode, John discusses the importance of standards and procedures, managing both the hardware and software sides of an IT department, integrating IT within business units and the importance of speaking to business teams in words and concepts they will understand. He also discusses implementing technology solutions for start-ups. John is also a co-founder and current board member of AITEC, an organization for technology professionals in the financial services field. He discusses how the organization started, the services it provides and its charity activities. For more information about AITEC, please visit https://www.aitec.org/