The Institutional Edge: Real allocators. Real alpha.

Nature as Alpha: Richard Kelly on the Natural Capital Opportunity

Angelo Calvello — Tue, 14 Apr 2026 08:00:00 +0000

Natural capital is the oldest asset class on earth — and one of the least understood by institutional investors. Richard Kelly, Managing Director and Co-Lead of Foresight Natural Capital at Foresight Group, makes the investment case from first principles: compelling risk-adjusted returns, a strong inflation hedge through commodity-linked cash flows, and genuine portfolio diversification with low correlation to equities, bonds, and real estate. He maps the investable landscape across categories — provisioning services, cultural services, and regulating and maintenance services — and argues that the middle ground, where land value underpins the return and carbon credits provide upside, is where the most compelling opportunities are emerging.

The conversation gets sharper when it turns to barriers. Kelly acknowledges the challenges institutional investors will recognize from other private markets — illiquidity, limited track record, a thin product set — but frames them as features of an asset class at an inflection point rather than reasons to wait. He addresses the troubled history of voluntary carbon markets directly, arguing that past scandals have accelerated the shift toward higher-integrity, removal-based credits, and that demand from the 10,000-plus companies with validated science-based net zero pledges will drive a structural supply shortage. He also warns investors to look past the natural capital label: owning a forest or a farm is not inherently a good investment, and the due diligence question is what is actually being done with the asset on the ground.

Richard Kelly is Managing Director and Co-Lead of Foresight Natural Capital at Foresight Group, where he focuses on sustainable real estate, forestry, and natural capital investment strategy. He joined Foresight in 2015 and has spearheaded direct origination of off-market afforestation land, leading the development and launch of four innovative strategies attracting approximately £1.5 billion in investment. With over 19 years of finance experience, Richard previously worked at Accenture as a Strategy Manager advising on merger and acquisition strategy across industries. He holds a BA in Business Management from Exeter University.

In This Episode:
(00:00) Richard Kelly, Foresight Natural Capital, and today's context

(03:43) Defining natural capital and its three ecosystem service categories

(06:44) Why natural capital is becoming a mainstream institutional asset class now

(13:50) The fiduciary case: competing head-to-head on risk-adjusted returns

(16:21) Mapping three investable strategies across the risk spectrum

(21:45) Voluntary carbon markets: from early scandal to high-integrity supply shortage

(30:04) Barriers to adoption, available structures, and greenwashing risks
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Dr. Angelo Calvello is a serial innovator and co-founder of multiple investment firms, including Rosetta Analytics and Blue Diamond Asset Management. He leverages his extensive professional network and reputation for authentic thought leadership to curate conversations with genuinely innovative allocators and thinkers.

As the "Dissident" columnist for Institutional Investor and former "Doctor Is In" columnist for Chief Investment Officer (winner of the 2016 Jesse H. Neal Award), Calvello has become a leading voice challenging conventional investment wisdom.

The Overlay That Paid for Itself: Verizon's Case for In-House GTAA

Angelo Calvello — Tue, 31 Mar 2026 08:00:00 +0000

How does a pension fund walk away from a global market crisis with $400 million in fresh liquidity?

In this episode of Institutional Edge, host Angelo Calvello speaks with Zhuoying (Joy) Xu, CFA, Senior Investment Director at Verizon Investment Management Corp (VIMCO). Joy shares how VIMCO built a systematic, derivatives-based GTAA overlay program that has generated over $1.2 billion in profit since 2014 — including nearly $400 million during COVID-19. She walks through the four-theme quantitative factor model, the qualitative Executive Committee oversight structure, and how the overlay functions as a self-funding tail risk hedge, offering a cost-efficient, high-conviction alternative to traditional options-based protection strategies.

Zhuoying (Joy) Xu, CFA, is a Senior Investment Director at Verizon Investment Management Corp (VIMCO), where she oversees a $50 billion institutional portfolio encompassing the company's pension and savings plans. As a core member of VIMCO's Executive and Investment Committees, Joy drives portfolio construction and asset allocation strategy and directs external manager due diligence across public and private markets. She has led a tactical overlay program that generated over $1.2 billion in profit over her ten-year tenure. Joy's career includes roles at BlackRock and Bank of America; she holds an MS in Finance from Boston College.

In This Episode:

(0:00) GTAA history and Joy Xu's $1.2B overlay at Verizon

(03:14) Genesis of Verizon's GTAA program and the SAA gap it was built to bridge

(06:38) Four-theme quantitative model: valuation, momentum, sentiment, and liquidity

(12:09) Risk management constraints, biweekly rebalancing cadence, and derivatives execution

(17:49) Qualitative oversight structure: EC governance, business cycles, and monetary policy

(21:57) Model overrides, performance results, and the self-funding tail risk hedge explained

(30:13) Building in-house GTAA: operational rigor and reframing the market timing objection
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From Qubits to Portfolios: The Investor's Guide to Quantum Computing

Angelo Calvello — Tue, 24 Mar 2026 08:00:00 +0000

Quantum computing may already be in your portfolio — do you know what you actually own?

In this episode of The Institutional Edge, host Angelo Calvello is joined by Dr. Daniel Volz — deep-tech entrepreneur, quantum computing expert, and founder and former CEO of KIPU QUANTUM — and Dr. Elisabetta Basilico, financial professional, institutional allocator, and author of Smarter Investing. Quantum computing is not a faster computer — it is a fundamentally different computing paradigm, and it is now at the threshold of commercial relevance. Elisabetta identifies three problems current portfolio construction tools leave genuinely unsolved. Daniel addresses all three, while also confronting the harder realities: scarce and expensive talent, the emerging risk of quantum washing, and why diversified exposure through hardware companies or a dedicated quantum VC fund is the prudent entry point today.

Dr. Elisabetta Basilico is a financial professional with over 20 years of experience working with institutional investors, including pension funds, asset managers, and family offices. Her areas of expertise include asset allocation, risk management, fund due diligence, and performance analysis. She is the author of Smarter Investing: How Academic Insights Propel the Savvy Investor and has written numerous articles on investing and financial education. She earned her PhD from the University of St. Gallen and has held the CFA designation since 2007.

Dr. Daniel Volz is a deep-tech entrepreneur and quantum computing expert with experience spanning strategy consulting, industrial R&D, and venture building. He is the founder and former CEO of KIPU QUANTUM, a quantum software company focused on developing application- and hardware-specific quantum algorithms for real-world industrial problems. Under his leadership, the company worked with leading industry users in quantum, and positioned itself at the forefront of near-term quantum advantage.

Prior to founding KIPU, Daniel worked on quantum computing strategy and applications at McKinsey & Company, where he advised global clients across chemicals, pharmaceuticals, energy, and finance on the commercial potential and realistic timelines of quantum technologies. He later joined BASF SE, contributing to early enterprise-level quantum initiatives and helping bridge emerging quantum capabilities with concrete industrial R&D and optimization use cases.

Daniel’s background combines hands-on scientific research with business execution. He holds a Ph.D. in Chemistry from Karlsruje Institute of Technology, where his research focused on advanced computational and physical chemistry topics. This foundation enables him to translate complex scientific concepts into practical technology strategies and scalable products.

He is an active speaker and contributor on quantum computing, commercialization, and deep-tech entrepreneurship, regularly engaging with investors, corporates, and policymakers. In this report, Daniel contributes perspectives on key quantum use cases, leading players, and major investments, offering a pragmatic, operator-driven view on how value is emerging in the quantum ecosystem today.

In This Episode:

(00:00) Why quantum matters to institutional investors now

(04:39) Daniel defines quantum computing as a fundamentally different paradigm

(07:54) QPU hardware landscape: multiple modalities in a VHS vs. Betamax race

(11:00) From 1980s academic concept to the threshold of commercial use

(14:55) What quantum can uniquely solve, and where it still falls short

(21:12) Quantum meets machine learning: convergence, not competition

(25:55) Elisabetta identifies three unsolved portfolio construction challenges

(35:24) Prudent entry point: hardware portfolio or dedicated quantum VC fund

(25:55) Three genuinely unsolved problems: inputs, risk preferences, and constraints

(42:07) Asset owners likely outbid for talent; quantum washing a real threat

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From Quotrons to AI: New York City Bureau of Asset Management Interim CIO Monte Tarbox on the Transformation of Institutional Investing

Angelo Calvello — Tue, 17 Mar 2026 08:00:00 +0000

When does the Total Portfolio Approach stop being innovation and start looking exactly like a hedge fund? Monte Tarbox has a sharp answer that might surprise you.

Host Angelo Calvello of Institutional Edge welcomes Monte Tarbox, Interim Chief Investment Officer of the New York City Bureau of Asset Management, for a sweeping look at three decades of institutional investing. Monte traces the industry from hand-calculated returns and Quotron terminals to Bloomberg, passive indexing, and alternatives. He offers a sharp critique of fee misalignment between asset managers and asset owners, a contrarian take on the Total Portfolio Approach, and a frank view of AI as disruptive reality rather than fad — closing with a bold prediction that a Bitcoin-driven financial crisis is on the horizon and a clear call for LP collaboration.

Monte Tarbox is the Interim Chief Investment Officer of the New York City Bureau of Asset Management, overseeing $311 billion across the city's five public pension systems. He previously served as CIO of the National Electrical Benefit Fund and IAM National Pension Fund, and spent five years with IFM Investors. He has led the AFL-CIO Center for Working Capital, serves as a public advisor to the Maryland State Retirement and Pension System, and is a former trustee of the Montgomery County Public School Retirement System and member of the PBGC Advisory Committee.

In This Episode:

(00:00) Monte Tarbox, NYC Bureau of Asset Management, $311B interim CIO

(03:54) Industry origins in 1990: Taft-Hartley plans and early consulting landscape

(06:00) Early portfolio construction: balanced mandates, Quotrons, and data scarcity

(10:10) Consultants as de facto CIOs: peer groups, returns, and fiduciary cover

(13:33) What improved: custody, trading technology, passive indexing, and governance

(20:07) Governance evolution: trustee sophistication, derivatives comfort, and the TPA debate

(27:51) What's gotten worse: managers capture scale benefits while LPs plod along

(36:30) AI is no fad: disruption, job displacement, and decoupling work from income

(40:51) Looking forward: LP collaboration, regulation, and a Bitcoin crisis prediction
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Beyond his professional pursuits, Calvello serves as Chairman of the Maryland State Retirement and Pension System's Climate Advisory Panel, Chairman of the Board of Outreach with Lacrosse and Schools (OWLS Lacrosse), a nonprofit organization creating opportunities for at-risk youths in Chicago, and trustee for a Chicago-area police pension fund. His career-long focus on leveraging innovation to deliver superior client outcomes makes him the ideal host for cutting-edge institutional investing conversations.

Resources:
Monte Tarbox — Maryland State Retirement and Pension System Public Advisor Profile: https://sra.maryland.gov/profile/monte-tarbox
NYC Bureau of Asset Management (Monte's current organization): https://www.nyc.gov/site/opa/investments/investments.page
National Electrical Benefit Fund (NEBF) — previous role: https://www.nebf.com
IAM National Pension Fund — previous CIO role: https://www.iamnpf.org
PBGC (Pension Benefit Guaranty Corporation) — Monte serves on Advisory Committee: https://www.pbgc.gov
Montgomery County Public School Retirement System — Monte is longtime trustee: https://www.montgomeryschoolsmd.org/offices/retirement/
Email Angelo: Angelo.Calvello@pionline.com
Email Julie: julie.parten@pionline.com
Pensions & Investments
Dr. Angelo Calvello LinkedIn

Pricing Uncertainty: What Institutional Investors Need to Know About Prediction Markets

Angelo Calvello — Tue, 10 Mar 2026 08:00:00 +0000

What if you could price geopolitical risk in real time — before it moves markets — using a publicly visible order book anyone can read right now?

In this episode of Institutional Edge, host Angelo Calvello is joined by Will Owens, Research Analyst at Galaxy Digital, and Zack Pokorny, Data Associate at Galaxy Digital, to discuss the current state and future trajectory of prediction markets. The conversation draws a distinction between sports-driven gambling activity dominating platforms like Kalshi and Polymarket and what Will and Zack call "signal markets" — focused on pricing the uncertainty of meaningful macro and geopolitical events. They cover impact markets, decision markets, and AI agents as a liquidity solution, with a pragmatic core message for institutional allocators: the information aggregation value is accessible today, but the more expressive, capital-efficient hedging structures that would truly serve large allocators are still maturing.

Will Owens is a Research Analyst on the Research Team at Galaxy Digital. Prior to joining the firm, he worked at UTXO Management, a Bitcoin-native hedge fund and venture firm, where he contributed to research and infrastructure. Will holds a degree in Computer Science and Human and Organizational Development from Vanderbilt University, where he also studied philosophy and game theory.

Zack Pokorny is a Data Associate on the Research Team at Galaxy Digital. Before joining the firm, he led on-chain research efforts at CEX.IO and served as an Acquisitions Analyst at Steel Wave. He holds a BA in Finance from Elon University.

In This Episode:

(00:00) Introduction of Will Owens and Zack Pokorny, Galaxy Digital

(03:01) State of prediction markets today: sports gambling vs. signal markets

(06:11) Why Galaxy Digital focuses on prediction markets and information aggregation

(08:23) Next generation markets: impact markets and decision markets explained

(14:28) DeFi applications: leverage, borrow-lend, and capital efficiency

(19:17) Multi-outcome unification and solving liquidity fragmentation

(20:17) AI agents as continuous market makers and liquidity solutions

(25:10) Why institutional investors should pay attention to prediction markets now

(30:11) Blockchain experimentation, futarchy, and fully autonomous organizations
Like, subscribe, and share this episode with someone who might be interested, and please take time to leave us a review!

Beyond his professional pursuits, Calvello serves as Chairman of the Maryland State Retirement and Pension System's Climate Advisory Panel, Chairman of the Board of Outreach with Lacrosse and Schools (OWLS Lacrosse), a nonprofit organization creating opportunities for at-risk youths in Chicago, and trustee for a Chicago-area police pension fund. His career-long focus on leveraging innovation to deliver superior client outcomes makes him the ideal host for cutting-edge institutional investing conversations.

Resources:
Galaxy Digital (employer): https://www.galaxy.com
Galaxy Digital Research Paper — Prediction Markets, Leverage, AI Agents & DeFi: https://www.galaxy.com/insights/research/prediction-markets-leverage-ai-agents-defi
Galaxy Digital Research Paper — Impact Markets & Conditional Pricing: https://www.galaxy.com/insights/research/impact-markets-prediction-markets-conditional-pricing
Galaxy Digital Research Paper — Prediction Markets, Impact Markets, Decision Markets & Futarchy: https://www.galaxy.com/insights/research/prediction-markets-impact-markets-decision-markets-futarchy
LinkedIn — Will Owens: https://www.linkedin.com/in/will-owens-b14257238/
LinkedIn — Zack Pokorny: https://www.linkedin.com/in/zack-pokorny-392179117/
Polyoptions (mentioned by Will Owens): https://www.polyoptions.com
Platforms referenced in episode — Polymarket: https://polymarket.com and Kalshi: https://kalshi.com
Hyperliquid (mentioned by Will Owens, Galaxy Digital has disclosed an interest): https://hyperliquid.xyz
Email Angelo: Angelo.Calvello@pionline.com
Email Julie: julie.parten@pionline.com
Pensions & Investments
Dr. Angelo Calvello LinkedIn

Failure-Tolerant Innovation: Paul Greff's Blueprint for Transforming a $130B Ohio Public Employees Retirement System Pension Fund

Angelo Calvello — Tue, 03 Mar 2026 09:00:00 +0000

How do you transform a $130 billion pension fund? Start by making it safe to fail.

Angelo Calvello, host of Institutional Edge, interviews Paul Greff, Chief Investment Officer of Ohio Public Employees Retirement System (OPERS) since 2018, about his comprehensive transformation of the $130 billion pension fund. Greff describes building a "failure-tolerant" culture of open innovation that encourages intelligent risk-taking, breaks down silos, and surfaces problems early. From 2018 to 2023, he restructured the portfolio by unwinding the 10% hedge fund allocation, moving from 35% to 55% internally managed assets, achieving a measurable reduction of fees, and consolidating multiple risk systems into one unified platform accessible to all staff.

Paul Greff is the Chief Investment Officer at Ohio Public Employees Retirement System (OPERS), a position he has held since 2018. Before becoming CIO, Paul served as Deputy CIO for two years and spent seven years as Head of Global Bonds at OPERS. Prior to joining OPERS, he was Senior Managing Director and Head of Global Fixed Income at State Street Global Advisors. With 36 years of institutional investing experience across public and private markets, Paul brings deep expertise in derivatives, fixed income, and multi-asset class portfolio management. He is a CFA charterholder.

In This Episode:

(00:00) Introduction of Paul Greff, CIO of OPERS, discussion of transformation journey

(04:01) Building a culture of open innovation and failure-tolerant environment

(06:24) Breaking down asset class silos through collaboration and communication

(09:30) Creating quantitative research group to enhance internal capabilities

(12:51) Major portfolio restructuring: unwinding hedge funds, bringing assets in-house

(16:45) Seven-year risk system consolidation creates unified platform for staff

(26:17) Building out office of CIO, exploring new strategies and opportunistic approaches

(31:24) Total portfolio approach discussion, philosophical alignment with OPERS strategy

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The Authenticity Crisis: Renee DiResta on How Propaganda Is Poisoning Alternative Data

Angelo Calvello — Tue, 24 Feb 2026 09:00:00 +0000

Your data is only as good as its source. What if the source is broken by design?

In this episode of Institutional Edge, host Angelo Calvello is joined by Renee DiResta, Associate Research Professor at Georgetown's McCourt School of Public Policy and former technical research manager at the Stanford Internet Observatory, to discuss how AI-generated content and algorithmic manipulation are creating an authenticity crisis that threatens institutional investors relying on alternative data. DiResta, who spent seven years as an equity derivatives trader at Jane Street, explains how trust has been reallocated from institutions to influencers, niche creators, and AI bots, producing a collision between volume, velocity, and veracity. For asset managers spending over $2 billion annually scraping the web and social media for data, DiResta warns that AI detection methods cannot reliably verify authenticity, adversarial attacks move faster than defenses, and content moderation has collapsed — making data fidelity a governance and fiduciary duty issue, not just a technical problem.

Renee DiResta is Associate Research Professor at Georgetown's McCourt School of Public Policy, where she studies computational propaganda, disinformation, and information warfare. She previously led technical research at the Stanford Internet Observatory and has briefed Congress, the State Department, and world leaders on influence operations. DiResta led the Senate Intelligence Committee's investigation into Russia's Internet Research Agency and testified publicly on its findings. Before her research career, she spent over seven years as an equity derivatives trader and market maker at Jane Street. She is the author of Invisible Rulers.

In This Episode:

(00:00) Renee DiResta and investment intelligence focus

(05:23) Trust reallocation: how credibility shifted from institutions to influencers

(07:48) The attention economy: 90-9-1 dynamics, algorithms, and content incentives

(12:52) Distrust as default: framing wars and real-time propaganda on social platforms

(16:03) AI, deepfakes, and the collapse of content authenticity verification

(25:41) The alt data danger: managers ingesting propaganda and unverified signals

(33:20) Content moderation collapse, the censorship reframe, and platform failures

(39:42) Signal curation, data fidelity, and fiduciary duty for asset managers
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Book: Invisible Rulers: The People Who Turn Lies Into Reality https://www.amazon.com/Invisible-Rulers-People-Turn-Reality/dp/1541703375

Essay: "There Are Bots; Look Around" (2017, Ribbonfarm) https://www.ribbonfarm.com/2017/05/23/there-are-bots-look-around/

Georgetown McCourt School of Public Policy https://mccourt.georgetown.edu/

Stanford Internet Observatory (former affiliation) https://cyber.fsi.stanford.edu/io

Email Angelo: Angelo.Calvello@pionline.com
Email Julie: julie.parten@pionline.com
Pensions & Investments
Dr. Angelo Calvello LinkedIn

The Information Edge: Prof. Robin Hanson's Tutorial on How Prediction Markets Actually Work and Why They Matter

Angelo Calvello — Tue, 10 Feb 2026 09:00:00 +0000

Are you ready for an information source that tells the truth—whether you want to hear it or not?

Angelo Calvello interviews Professor Robin Hanson, a pioneer in prediction markets since 1988, about how these markets work and their applications for institutional investors. Prof. Hanson, an Associate Professor of Economics at George Mason University, explains that prediction markets aggregate information with remarkable calibration: when markets show an 80% probability, outcomes occur exactly 80 times out of 100. He introduces decision markets for conditional estimates and discusses internal corporate applications. Despite consistently outperforming expert forecasts and committees, Hanson identifies a critical barrier: organizations resist these markets because they provide politically disruptive, independent information that conflicts with controlled narratives.

Professor Robin Hanson has pioneered prediction markets since 1988, being the first to write extensively about creating and subsidizing markets to improve estimates of important topics. He was principal architect of the first internal corporate markets at Xanadu (1990), the first web markets at Foresight Exchange (1994), DARPA's Policy Analysis Market (2001-2003), and IARPA's combinatorial markets (2010-2015). As Associate Professor of Economics at George Mason University and Research Associate at Oxford's Future of Humanity Institute, Hanson holds a doctorate from CalTech, master's degrees from the University of Chicago, and brings nine years of research programming experience from Lockheed and NASA.

In This Episode:

(00:00) Introduction to Professor Robin Hanson - What are prediction markets and how do they work mechanically?

(08:27) Information aggregation as the primary value for institutional investors

(14:42) Regulatory framework and platform risks in prediction markets

(19:16) Market manipulation concerns and why markets get more accurate

(24:57) Decision markets and conditional estimates for better choices

(30:19) Political disruption and organizational resistance to independent information

(33:06) Long-term potential and future growth of prediction markets
Like, subscribe, and share this episode with someone who might be interested, and please take time to leave us a review!

Dr. Angelo Calvello is a serial innovator and co-founder of multiple investment firms, including C/79 Consulting, Rosetta Analytics and Blue Diamond Asset Management. He leverages his extensive professional network and reputation for authentic thought leadership to curate conversations with genuinely innovative allocators.

Biography: https://mason.gmu.edu/~rhanson/bio

Publications/Vita: https://mason.gmu.edu/~rhanson/vita.html

George Mason University Profile: https://economics.gmu.edu/people/rhanson

Personal Website: http://hanson.gmu.edu

Twitter/X: (Search @robinhanson)

Prediction Market Platforms Mentioned:

Polymarket: https://polymarket.com

Kalshi: https://kalshi.com

Metaculus: https://metaculus.com

Manifold Markets: https://manifold.markets

Robin Hanson's Essays on Prediction Markets: http://hanson.gmu.edu/futarchy.html
Overcoming Bias Blog (co-founded by Hanson): https://www.overcomingbias.com
Email Angelo: Angelo.Calvello@pionline.com
Email Julie: julie.parten@pionline.com
Pensions & Investments
Dr. Angelo Calvello LinkedIn

Part II: AGI and Quantum – Betina Kitzler on AI's Next Chapter

Angelo Calvello — Tue, 03 Feb 2026 09:00:00 +0000

Can AI pass the "coffee test"—problem-solving when things break?

In Part II of this Institutional Edge episode, host Angelo Calvello and Betina Kitzler, MIT Sloan Fellow and AI advisor, explore AGI timelines and quantum computing commercialization. Kitzler introduces the "coffee test" for AGI—whether AI can problem-solve when systems break—and argues that investors should focus on high-value, specific problems, such as AlphaFold's protein-folding breakthrough, rather than theoretical general intelligence. She explains that quantum computing remains in the research phase despite heavy VC investment, with potential applications in drug discovery and handling unpredictable "messy data." Her strategic advice: assemble cross-functional teams, test in sandbox environments, and combine structured and unstructured data for measurable ROI in 2026.

Betina Kitzler has run 80M € P&Ls at global companies including Unilever and Mars, and led crisis response programs for the Austrian government. As an early GenAI advisor, she helps global leadership teams translate emerging AI capabilities into practical operating models. An MIT Sloan Fellow, Kitzler specializes in making organizational transformation work in the real world, not just in PowerPoints. She currently advises an MIT deeptech venture on quantum simulation commercialization and writes a weekly newsletter called "AI and the Daily Madness," which has become essential reading for professionals interested in AI's practical applications. Her expertise bridges technical capability and business execution.

In This Episode:

(00:00) Welcome to Part II, AGI prospects and expert disagreement

(04:43) The coffee test for AGI and focusing on high-value problems

(06:11) AlphaFold breakthrough, solving specific problems for societal impact

(11:14) Quantum computing fundamentals, research phase and commercialization timeline

(17:09) Qubits, messy data, and simulation tools for unpredictable systems

(20:00) Strategic advice for institutional investors implementing AI in 2026
Send me your ideas on how to pitch an AI strategy!
Like, subscribe, and share this episode with someone who might be interested, and please take time to leave us a review!

Dr. Angelo Calvello is a serial innovator and co-founder of multiple investment firms, including Rosetta Analytics and Blue Diamond Asset Management. He leverages his extensive professional network and reputation for authentic thought leadership to curate conversations with genuinely innovative allocators.

Chapters

(00:00:00) - The Institute: Quantitative Investing
(00:01:07) - Quantum Computing and AI: The AGI Question
(00:05:44) - Will AI Get to AGI?
(00:09:31) - Q&A: Deep Tech and AGI
(00:10:45) - What's Quantum Computing
(00:12:34) - Qubits and the Future of Computing
(00:18:50) - How to Build a Business on LinkedIn
(00:19:25) - WSJD Live: Institutional Investors and AI
(00:21:31) - In the Elevator With AGI
(00:24:18) - What's The Line Between Ethics & AI?

Part I: AI's Year of Reckoning – Betina Kitzler on Pilots, Production, and Proving ROI

Angelo Calvello — Tue, 27 Jan 2026 09:00:00 +0000

Why do 95% of GenAI projects fail, and what are the 5% doing differently?

In Part I of this Institutional Edge episode, host Angelo Calvello interviews Betina Kitzler, MIT Sloan Fellow and early GenAI advisor, about AI's practical applications for institutional investors in 2026. Kitzler explains why 95% of GenAI projects fail, emphasizing the critical need to define specific problems before implementation. She highlights AI's ability to process unstructured data—news, text, and non-standardized information—that traditional models cannot handle, creating potential advantages for investment decisions. The conversation addresses security risks, including prompt injection attacks, accountability structures, and the need for clear workflows and sandboxed testing environments for successful AI adoption. Part II explores quantum computing and strategic implementation.

Betina Kitzler has run 80M € P&Ls at global companies including Unilever and Mars, and led crisis response programs for the Austrian government. As an early GenAI advisor, she helps global leadership teams translate emerging AI capabilities into practical operating models. An MIT Sloan Fellow, Kitzler specializes in making organizational transformation work in the real world, not just in PowerPoints. She currently advises an MIT deeptech venture on quantum simulation commercialization and writes a weekly newsletter called "AI and the Daily Madness," which has become essential reading for professionals interested in AI's practical applications. Her expertise bridges technical capability and business execution.

In This Episode:

(00:00) Introduction to Institutional Edge and guest Betina Kitzler

(03:55) Is 2026 AI's year of reckoning moving from pilots to production

(11:40) Using AI for better investment decisions through unstructured data

(16:30) Workflow optimization, accountability, and cross-functional AI implementation

(24:04) Security concerns, data privacy, and prompt injection attacks

(32:27) AGI prospects, expert disagreement, and intelligence definitions
Send me your ideas on how to pitch an AI strategy!
Like, subscribe, and share this episode with someone who might be interested, and please take time to leave us a review!

Chapters

(00:00:00) - Institutional Edge: The AI Whisperer
(00:01:50) - Podcasters: Warm Up With Books
(00:02:05) - Questions for the Future of Investment
(00:03:09) - Is 2026, AI's Year of reckoning?
(00:11:22) - Exogenous Friction Points in AI
(00:15:33) - Will AI Improve Workflows?
(00:16:28) - Do You Worry About Agencian Misalignment?
(00:18:40) - Have You Had a Conversation About Gen AI?
(00:21:24) - Chatbot: The Future of Security
(00:26:10) - Interview With Bettina Kichler

The Arc of Portable Alpha: Greg Williamson on 40 Years of Innovation and Institutional Memory

Angelo Calvello — Tue, 20 Jan 2026 09:00:00 +0000

Angelo Calvello sits down with longtime colleague Greg Williamson, former CIO at BP America pension fund and American Red Cross, about portable alpha and institutional innovation. Greg's team at Amoco pioneered portable alpha in 1989, separating alpha from beta to build diversified portfolios of alpha generators while managing beta through derivatives. Their first manager, Jacobs Levy, delivered 10% alpha. Greg discusses the 2008-2009 crisis exposing excessive leverage and frauds, evaluates whether ETFs and risk parity are true innovations, and explores tokenization and blockchain. He explains why innovation has slowed at large institutions due to consultant-driven models and fiduciary concerns.

Greg Williamson is a globally recognized investment executive with 40 years of experience. He currently serves as CEO of Axion Ventures/RAW Energy and previously was CIO at American Red Cross, overseeing $5.5 billion in assets. Greg spent 25 years as CIO at BP America, managing $18 billion in pension and foundation assets across the Americas. Earlier, he was Senior Venture Investment Director at Wisconsin Economic Development Corporation and co-founder of Pluribus Labs. Greg pioneered portable alpha strategies at Amoco in 1989 and has been an early adopter of technology, AI, and tokenization. He holds an MBA from Northwestern's Kellogg School.

In This Episode:

(00:00) Greg Williamson’s pioneering work in institutional investing

(07:39) Origin story of portable alpha at Amoco in late 1980s

(12:04) Building diversified portfolios of alphas across multiple asset classes

(17:37) The 2008 crisis exposing excessive leverage and hidden beta risks

(22:11) Major fraud cases and the critical importance of position transparency

(25:44) Evaluating supposed innovations: ETFs, currency overlay, and risk parity

(35:25) Crypto and blockchain as true innovations in creating new asset classes

(38:48) Why innovation has slowed at large institutions and moved elsewhere
Send me your ideas on how to pitch an AI strategy!

Like, subscribe, and share this episode with someone who might be interested, and please take time to leave us a review!

Chapters

(00:00:00) - The Institutional Edge: Quantitative Investing
(00:01:05) - Institutional Edge: Institutional Investing and Innovation
(00:02:11) - Angelo Golfer on Travel
(00:02:51) - Portable Alpha and Inventors
(00:05:17) - Portable Alpha at Amoco Pension Fund
(00:09:35) - Angelo on Stocks Plus
(00:13:16) - Alpha and Beta in the Market
(00:14:46) - Quantitative Analysis of Risk and Return in the 90s
(00:17:05) - In the Elevator With Portfolio Alpha
(00:21:07) - Panagora's Approach to Portable Alpha
(00:22:57) - Portable Alpha and Portfolio Innovation
(00:28:01) - Currency Overlay and Asset Allocation
(00:29:19) - Risk Parity
(00:30:39) - Jim Simons: Innovator or Great Investor?
(00:31:16) - In the Elevator With John Bogle
(00:32:26) - Louis Ranieri
(00:33:26) - Inventing a Crypto Alpha
(00:35:41) - Will Tokenization Change the Way We Invest?
(00:37:42) - Will Institutions Continue to Be Innovative?
(00:41:29) - This Podcast Is For Investors Only

How to Pitch an AI Investment Strategy

Angelo Calvello — Tue, 13 Jan 2026 09:00:00 +0000

What if transparency (not secrecy) is actually your competitive advantage when pitching AI strategies?

In this solo episode of The Institutional Edge, host Angelo Calvello, PhD, co-founder of Rosetta Analytics, shares critical lessons from nine years of pitching AI-based investment strategies to institutional allocators. Angelo breaks down four essential lessons for managers: defining AI precisely through transparency, disclosing model sources and demonstrating technical ownership, emphasizing human-AI collaboration over autonomy, and making explainability non-negotiable. Drawing on research from Gary Marcus and Anthropic, plus real allocator feedback, Angelo reveals why institutional investors aren't ready for fully autonomous AI strategies and provides practical frameworks for successful fundraising conversations.

In This Episode:

(00:00) Introduction to pitching AI strategies and the allocator knowledge gap

(01:08) Lesson 1: Define your AI precisely and build trust through transparency

(04:10) Lesson 2: Disclose model source and demonstrate technical ownership

(07:23) Lesson 3: Emphasize human-AI collaboration, not AI autonomy

(09:02) Lesson 4: Explainability techniques, black box challenges, and closing recap
Send me your ideas on how to pitch an AI strategy!

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Related Articles:

Pensions & Investments Op-Ed: Pitching AI Strategies - Angelo's full article on this topic

Research & References Mentioned:

Gary Marcus on LLM limitations: A Knockout Blow for LLMs

Gary Marcus on agentic misalignment: "Nobody in the industry has a clue how to stop this"

Anthropic Research: Agentic Misalignment Study

Email Angelo: Angelo.Calvello@pionline.com
Email Julie: julie.parten@pionline.com
Pensions & Investments
Dr. Angelo Calvello LinkedIn

Chapters

(00:00:04) - Angelo Calvello on AI Investment Strategies
(00:01:19) - 4 Rules for Convivial AI Proposals
(00:04:23) - Lesson #4 on Large Language Models
(00:07:22) - 3 Rules for Fully Autonomous AI
(00:08:52) - 4 Rules for Pitch an AI Strategy

Is TPA a new idea or a new name? Beyond the Acronyms: LACERA’s Jon Grabel on Holistic Portfolio Management

Angelo Calvello — Tue, 06 Jan 2026 09:00:00 +0000

How did LACERA stay positive in fiscal 2022 when most pension funds were down—and what does their "functional framework" have to do with it?

Some nvestment consultants are promoting Total Portfolio Approach (TPA) as the next evolution in institutional investing. But what if sophisticated asset owners have been doing this work all along—without the capital letters?

Jon Grabel, CIO of Los Angeles County Employees Retirement Association (LACERA), joins the show to discuss how his team manages $90 billion for 200,000 active and retired members using what he calls a "total fund approach" (lowercase, thank you very much). Jon explains why he's skeptical of buzzwords and how LACERA's functional framework has delivered proof points through multiple market cycles.

What We Cover

Why capitalizing "TPA" may overcomplicate what sophisticated plans already do
LACERA's functional framework: Growth, Risk Mitigation, Real Assets, and Credit
How LACERA's team structure mirrors its investment structure to break down silos
Culture Day: One day per month with no manager meetings, focused on team development
Investment committee structure where every vote is equal (CIO votes last)
The role of benchmarks in accountability vs. marketing
Governance evolution: Education, board delegation, and investment beliefs as policy
Competition within teams (public vs. private equity) rather than between teams
Why knowing your prospect's name matters (seriously, get this right)

Jonathan Grabel is Chief Investment Officer at Los Angeles County Employees Retirement Association (LACERA), where he manages the $90 billion defined benefit pension fund and oversees investments for LACERA's retiree healthcare benefits program serving approximately 200,000 active and retired members. Prior to LACERA, Jon was CIO at New Mexico PERA, overseeing the $15 billion defined benefit fund. Previously, he was a general partner at a private equity firm focused on growth-stage technology investments and worked as an investment banker and licensed CPA. Jon holds a Bachelor of Science in Economics from Wharton and an MBA from the University of Chicago Booth School of Business.

In This Episode:

(00:00) Jon Grabel, CIO at LACERA managing $90 billion

(04:05) Setting the stage: What is total portfolio approach

(05:59) Why capitalizing letters overcomplicated sophisticated asset owner work

(13:06) Competition within teams versus between teams at LACERA

(19:05) Building culture through monthly culture days and healthy debate

(26:16) Benchmarks as accountability tools versus marketing purposes

(30:28) Worst pitch: When firms confuse your organization's name

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Beyond Fee Savings: How IPERS Uses Co-Investments to Build Investment Talent

Angelo Calvello — Tue, 30 Dec 2025 09:00:00 +0000

Why does IPERS say NO to 95% of co-investment deals? Their CIO reveals the disciplined approach that attracts top practitioners to public service.

In Episode 13 of “The Institutional EDge,” host Angelo Calvello explores an innovative co-investment approach with IPERS' CIO Sriram Lakshminarayanan and Senior Investment Officer Craig Payne. Managing $47 billion with a nine-person team, IPERS maintains a selective <5% co-investment acceptance rate while requiring three-week minimum diligence timelines. Beyond fee reduction, their coinvestment program serves as a deliberate talent development strategy, empowering staff to make consequential investment decisions while testing GP capabilities in real-time. The conversation reveals how hiring "practitioners of investments" creates a knowledge-based culture that attracts sophisticated talent to public service while elevating team conversations from manager selection to investment strategy.

Sriram Lakshmararayanan serves as Chief Investment Officer at Iowa Public Employees' Retirement System, overseeing approximately $47 billion in pension assets. He has transformed IPERS' approach to public and private markets, emphasizing cost-effective beta access and strategic co-investment practices. Craig Payne is Senior Investment Officer at IPERS, focusing on private asset investments including fund commitments and co-investments. With over two decades of private markets experience, Craig previously served as Managing Director and IC Member at BlackRock Private Equity Partners and brings deep expertise in co-investment diligence and portfolio construction to IPERS' innovative approach.

Craig Payne is Senior Investment Officer at Iowa Public Employees' Retirement System (IPERS), where he focuses on private asset investments, including fund commitments and co-investments across real assets and private credit. Craig brings over two decades of private markets experience to IPERS, most recently serving as Managing Director and IC Member at Transition Equity Partners (2022-23). Previously, he served as Director of Private Investments at Olympus Ventures (2020-2022), Managing Director and IC member at BlackRock Private Equity Partners (2007-2019). His earlier career includes roles at General Electric Equity as Vice President (2002-2006), where he managed a $1.6 billion portfolio. Craig holds a BA in Economics and Political Science from McGill University and an MBA in Finance, Entrepreneurship, Strategic Management, and Accounting from the University of Chicago.

In This Episode:

(00:00) Introduction to IPERS co-investment strategy and guest backgrounds

(03:29) Craig Payne: Accessing beta cost-effectively across public and private markets

(13:43) Independent diligence process and rubber stamp avoidance strategies

(19:54) Managing GP timelines while maintaining fiduciary responsibility standards

(23:40) Hiring practitioners over oversight managers for organizational development

(33:19) Mission-driven work and public service compensation realities

(39:32) Worst pitch stories from decades of private markets experience

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Private Equity in 401(k)s: Democratizing Returns or Democratizing Risk?

Angelo Calvello — Tue, 23 Dec 2025 09:00:00 +0000

Can "onerous disclosure" actually protect 401(k) participants from alternative investment losses?

In Episode 4 of the Private Markets Series, Angelo Calvello, host of Institutional Edge, interviews Gerald Alain Chen-Young, Chief Investment Officer of the National Public Pension Funds Association and Principal at GCY Associates LLC. They examine President Trump's August 2025 executive order expanding 401(k) access to alternative assets including private equity, venture capital, hedge funds, private credit, real estate, and digital currencies. Gerald identifies five critical risks: complete capital loss, extended illiquidity, zero government protection, complex valuations, and layered fees. He discusses both benefits and challenges, emphasizing that plan sponsors must provide clear risk disclosure and robust participant education to meet fiduciary standards.

Gerald Alain Chen-Young serves as Chief Investment Officer of the National Public Pension Funds Association and Principal of GCY Associates LLC, an independent global institutional advisory firm. Previously, he was VP and Chief Investment Officer at UNCF (2002-2016), managing three portfolios totaling approximately $1 billion at their peak. Gerald holds postgraduate degrees in Economics from the London School of Economics and York University, and in Law from the University of Miami and Washington College of Law. He won Institutional Investor's "Investor Intelligence Awards, Thought Leadership" (2016) and was twice nominated to the ai-CIO Power 100 CIOs global list.

In This Episode:

(00:00) Introduction to Private Markets Series Episode 3, Professor Gregory Brown

(03:37) Research framework, data sources, and performance metrics explained

(08:59) Benchmarking methodology and findings for equity funds

(16:32) Debt funds and real asset performance results

(22:23) Overall conclusions and practical guidance for institutional investors

(27:59) Future research directions and portfolio-level analysis

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Chapters

(00:00:00) - The Institutional Edge: When Crypto Hits
(00:01:41) - Private Market: The democratization of alternative investments in 401 plans
(00:03:11) - Democrats: Democratizing Access to Alternative Investments in 401K Accounts
(00:13:07) - Private Investment vs Public Asset Returns
(00:14:38) - Private Equity Investments Under a DC Plan
(00:19:38) - Private Crypto: Regulatory Risk
(00:24:56) - Crypto: Safe Harbor or a Currency?
(00:26:34) - Fiduciary perspectives on crypto-deductions
(00:34:24) - CIOs and their Sell Side Suitability
(00:36:00) - Best Investment Pitch You've Ever Heard
(00:38:36) - Sponsored: This podcast is for educational purposes only

Unpacking TPA: Bloomberg’s Justina Lee’s Take on the Latest Asset Allocation Trend

Angelo Calvello — Tue, 16 Dec 2025 09:00:00 +0000

Is Total Portfolio Approach the next Portable Alpha—brilliant innovation or overhyped rebranding?

Justina Lee, senior reporter at Bloomberg News covering global markets and quant strategies, joins the show to dissect the Total Portfolio Approach phenomenon sweeping through institutional investing. Fresh off covering CalPERS's historic shift from 11 asset class benchmarks to a single 75/25 reference portfolio, Justina reveals why TPA has become the industry's latest buzzword—and why finding critics willing to speak on the record proved surprisingly difficult. The conversation explores whether TPA represents genuine innovation or clever rebranding of existing SAA capabilities, with Justina noting that many allocators claiming to adopt TPA are actually implementing "way lighter versions" while service providers rush to pitch whatever they're selling as TPA-compatible. The discussion addresses critical implementation barriers, including challenges in factor analysis in private markets, the governance tension between board oversight and CIO discretion, and the uncomfortable question of accountability when asset class benchmarks disappear.

The episode expands beyond TPA to explore cutting-edge developments in quantitative investing, artificial intelligence, and prediction markets. Justina discusses Numerai's unconventional crowdsourced hedge fund model, which recently raised $30 million at a $500 million valuation after outperforming traditional quant peers, and explains how founder Richard Craib's decade-long persistence with AI, crypto rewards, and global talent aggregation may finally be paying off. The conversation then shifts to prediction markets, where Justina reports that institutional players like Jump Trading are beginning to provide liquidity on platforms like Polymarket and Kalshi, though serious institutional money remains largely on the sidelines due to ongoing regulatory uncertainty. Throughout, Justina and Angelo debate whether the industry's incremental improvements, like TPA, are sufficient or whether truly transformative solutions, like deep reinforcement learning, are needed to solve the fundamental portfolio optimization problem.

Justina Lee is a London-based senior reporter at Bloomberg News covering cross-asset markets, with a particular focus on bonds, structured finance, cryptocurrencies, and quantitative strategies—and what she calls "weird asset classes" like prediction markets. She's been with Bloomberg for 12 years, starting her career covering Greater China markets from Taipei and Hong Kong before relocating to London, where she's reported on quantitative strategies and other nerdier financial topics for the past five years.

In This Episode:

(00:00) Introduction to guest Justina Lee

(04:12) Why Total Portfolio Approach became investing's latest buzzword

(08:15) Governance tensions and the Portable Alpha comparison

(12:16) TPA hype, implementation barriers, and leadership challenges

(20:34) Deep reinforcement learning as the real optimization solution

(24:04) Numerai's crowdsourced hedge fund model disrupting quant investing

(28:41) Prediction markets gaining traction with institutional players

(31:30) Closing thoughts and worst journalistic pitches

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Taking Chips Off the Table: The Rise of Secondaries with Andy Greene, CIO, Toronto Transit Commission Pension Plan

Angelo Calvello — Tue, 09 Dec 2025 10:00:00 +0000

How do you mitigate the J-curve while getting your capital back 2 years faster than traditional funds?

Andy Greene, CIO of the $10 billion Toronto Transit Commission Pension Plan, discusses how his team has successfully increased its private markets allocation from 20% to 41% since 2017, with a notable focus on using secondaries as a strategic tool. Andy outlines the key benefits of secondaries, including liquidity management, better pacing control through faster cash-back factors, J-curve mitigation, attractive pricing opportunities, and diversification across vintage years and geographies. He emphasizes that secondaries have become increasingly important as a portfolio management tool, allowing asset owners to actively rebalance rather than remain passive LPs stuck in underperforming positions.

Andy also highlights significant challenges in executing secondaries transactions, including extreme time pressure with limited information, valuation complexity, information asymmetry, substantial operational burdens from complex legal documentation, and resource constraints that force his team to be highly selective. His organization has adapted by evolving its governance structure to allow Andy and his CEO delegation authority for faster decision-making, hiring an operational due diligence specialist, and strategically sourcing deals primarily through existing GP relationships and advisors. Andy notes that while secondaries offer powerful benefits, asset owners must be prepared for the possibility of getting stuck with legacy assets and need the capabilities to properly underwrite these more complex opportunities compared to traditional fund commitments.

Andy Greene is Chief Investment Officer for the Toronto Transit Commission Pension Plan, a $10 billion fully funded defined benefit plan. With over 25 years in the investment industry across Canada and the U.S., Andy joined TTCPP in 2017 as its first dedicated investment professional and built the investment department. He oversees all investment functions including strategy, portfolio construction, due diligence, and risk management. Andy holds an M.A. in Applied Economics from Binghamton University, a B.A. in Economics from Ithaca College, and the CIM and CAIA designations. He was recently named 2025 Public Fund CIO of the Year by Institutional Investor.

In This Episode:

(00:00) Andy Greene, CIO of Toronto Transit Commission Pension Plan

(05:19) Building a high-performing investment platform, private markets allocation growth

(07:02) Benefits of secondaries for liquidity, pacing and portfolio management

(12:35) Challenges in secondaries, valuation complexity and information asymmetry

(17:17) Time pressure and resource constraints in secondary transactions

(21:29) GP-led secondaries and continuation vehicles in private markets

(27:43) Asset owners must be active LPs, not passive in private markets

(32:40) Final thoughts on building relationships and understanding asset owner needs

Like, subscribe, and share this episode with someone who might be interested, and please take time to leave us a review!

Beyond his professional pursuits, Calvello serves as Chairman of the Maryland State Retirement and Pension System's Climate Advisory Panel, as Chairman of the...

Chapters

(00:00:00) - Primary Opportunities vs. Diversified Portfolios
(00:00:27) - Private Market Podcast
(00:03:12) - Chicagoans Talk About Food
(00:04:35) - What Makes a Cio So Successful?
(00:05:15) - Ontario Pension Plan's Private Equity Portfolio
(00:06:52) - Are Secondaries Necessary for Asset Owners?
(00:12:27) - The Challenges of Looking at Secondaries
(00:13:59) - Underwriting Secondaries: Complex Valuation Issues
(00:18:26) - Gap Capital Is Also Involved in Secondaries
(00:21:21) - Are GP led deals more prevalent in India?
(00:22:05) - Have GPs Turned to Continuation Vehicles?
(00:22:54) - Limited Partners Buying Minority Stakes in Private Equity Firms
(00:27:06) - Private Markets: Asset Owners Need to Be More Active
(00:30:38) - The Worst Sales Pitch Ever Heard
(00:35:07) - DISCLAIMER: This podcast is for educational purposes only

How Selective Insurance Unlock Private Market Returns Through Structured Innovation

Angelo Calvello — Tue, 02 Dec 2025 09:00:00 +0000

"We don't have to invest in privates"—When does a CIO managing $11 billion say no to alternative investments?

In our 16th episode of our Private Markets Series, Joe Eppers (CIO) and Vaib Kalia (Head of Fixed Income) from Selective Insurance explain how P&C insurance companies benefit from private market investing. The key advantages include diversification, the ability to capture liquidity premiums from steady cash flows, and higher yields than public markets. They discuss how the private markets have evolved dramatically over the past decade through securitization technology, creating "rated feeders" that allow investors to choose their position in the capital stack—from senior AAA tranches to equity—in bond-like formats rather than traditional illiquid LP structures. Their investment process focuses on three pillars: manager selection, collateral evaluation, and rigorous structure analysis with particular emphasis on covenant strength, LTV tests, and stress testing. They invest across direct lending, asset-backed finance (equipment leases, music royalties), and private equity, evaluating opportunities based on excess spread over comparable public market alternatives.

The conversation also covers performance measurement challenges in opaque markets, governance, and stakeholder management built on transparency over 10+ years, and their views on the democratization of alternatives in 401(k) plans.

Joe Eppers is the Chief Investment Officer of Selective Insurance, where he oversees more than $11 billion in general account assets and over $1 billion in retirement assets across defined benefit and defined contribution plans. With over 25 years of investment experience, Joe has spent the past decade as CIO building a diversified, high-performing investment platform that blends disciplined risk management, strong governance, and a thoughtful expansion into private markets designed to enhance yield and diversify risk while aligning with the capital efficiency, liquidity, and return objectives of a P&C insurer. Before joining Selective, Joe was a Director at BlackRock in the Financial Institutions Group, where he focused on cultivating client relationships and delivering customized strategic investment solutions to insurance clients and prospects. He previously served as Senior Vice President at Endurance Specialty Holdings, where he held numerous roles involving asset allocation, manager selection and oversight, and risk management for the company’s global reinsurance platform. Joe earned his BS in Economics from Purdue University and MBA in Finance from Butler University, and is a Chartered Financial Analyst (CFA) Charterholder.

Vaibhav Kalia is an insurance investment professional specializing in fixed income portfolio management, risk analysis, and asset allocation. Currently serving as SVP, Head of Fixed Income at Selective Insurance, Vaib has oversight over the firm's general account & retirement assets totaling ~$12B, directing investment strategy, sourcing public and private fixed income investments and managing external manager mandates. Previously at Blackrock, Vaib was a VP within RQA responsible for risk management of multi-sector fixed income funds totaling ~$40 billion. He also spent 4 years at HSBC Bank in different roles within Structured products as a trader, structurer and risk manager. He graduated with M.S. in Financial Engineering from Columbia University, MBA in Finance from IIM Calcutta, and B. Tech. in Electrical Engineering from IIT Delhi.

In This Episode:

(00:00) Joe Eppers and Vaib Kalia from Selective Insurance

(04:41) Core benefits of private market investing for P&C insurance companies

(07:45) Evolution of private markets through securitization and rated feeders

(15:44) Investment decision-making process: manager, collateral, and structure analysis

(21:27) Performance measurement challenges and benchmarking opaque private investments

(28:07) Democratization of alternatives in 401k plans and potential consequences

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An Unfiltered Take on Private Markets: Huizenga Capital Management’s Brad Bryndal on AI, Defense Tech, and the Tokenization of RWA

Angelo Calvello — Tue, 18 Nov 2025 09:00:00 +0000

What if enterprise software as we know it is dead in five years? A family office insider explains why AI might make traditional SaaS obsolete.

In the 8th installment of our Private Markets Series, host Angelo Calvello interviews Brad Bryndal, Senior Managing Director at Huizenga Capital Management, about his unconventional approach to private markets. Brad discusses why venture capital remains their best-performing asset class despite extended exits, shares concerns about AI overcapitalization while acknowledging rising valuations, and explains his early conviction in defense technology and cryptocurrency. The conversation explores enterprise software disruption, tokenization of real-world assets, and the case for democratizing private market access in retirement plans. Brad's candid perspective offers institutional investors an unfiltered look at emerging opportunities.

Brad Bryndal is Senior Managing Director and member of the Investment Committee at Huizenga Capital Management, a family office based in the Chicago area. At Huizenga, Brad is responsible for sourcing, analyzing, and managing private and direct investment opportunities across venture capital, defense technology, cryptocurrency, and tokenized assets. Prior to joining Huizenga, Brad worked as a Portfolio Manager at Man Group Plc, where he developed expertise in alternative investments and risk management. He received his undergraduate degree from Miami University in 1995. Brad is known for his early conviction in emerging technologies and contrarian investment approach.

In This Episode:

(00:00) Brad Bryndal and his unconventional investment approach

(03:32) Brad's early career, crypto journey, and libertarian philosophy

(05:03) Venture capital returns and the extended exit environment

(08:06) AI's impact on enterprise software and future business models

(13:43) Defense tech investing and the changing military-industrial complex

(22:12) Tokenization of real-world assets and blockchain infrastructure

(29:39) Workforce implications and democratization of private market access

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SBCERA's Don Pierce: Why Cash Has Option Value in Private Markets

Angelo Calvello — Tue, 11 Nov 2025 09:00:00 +0000

How does a $20B+ pension fund generate $1 billion in gains from rebalancing alone?

In Episode 14 of “The Institutional Edge,” host Angelo Calvello sits down with Don Pierce, Chief Investment Officer at San Bernardino County Employees' Retirement Association (SBCERA). Don shares his distinctive income-first approach to private markets investing, including a 50% allocation across private equity, credit, and real commodities. He discusses SBCERA's recent European credit expansion, innovative master custody arrangements enabling emerging manager access, and the philosophy behind owning real assets versus traditional funds. Don also addresses practical challenges of managing illiquidity and shares his perspective on AI for investment forecasting versus operational efficiency, emphasizing his quantitative, numbers-driven investment approach.

Donald Pierce serves as Chief Investment Officer at San Bernardino County Employees' Retirement Association (SBCERA), a position he has held since October 2010. He is responsible for day-to-day operations of the investment division, including policy development, investment objectives, and manager selection. Don has served as an Investment Officer at SBCERA since 2001, having previously worked with Watson Wyatt for nearly four years on pensions, healthcare, and investments. He spearheaded SBCERA's rebalancing methodology, which has contributed over $1 billion in gains since 2006. Don holds a Bachelor of Science in Statistics from San Diego State University and is a CFA charter holder.

In This Episode:

(00:00) Introduction of guest Don Pierce, discussion of his role at SBCERA

(02:46) Quick-fire round with Don, exploring passion versus numbers approach

(03:43) Private markets portfolio overview, allocation breakdown across asset classes

(05:52) European credit expansion strategy, diversifying private credit exposure globally

(11:28) Alternative asset opportunities in cattle, grain silos, and commodities investing

(19:09) Managing illiquidity challenges and portfolio construction in private markets

(28:17) Governance innovations - emerging manager programs and master custody arrangements

(31:06) Perspectives on AI implementation and alternatives in 401k plans

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Beyond Fee Savings: How IPERS Uses Co-Investments to Build Investment Talent

Angelo Calvello — Tue, 04 Nov 2025 09:00:00 +0000

Why does IPERS say NO to 95% of co-investment deals? Their CIO reveals the disciplined approach that attracts top practitioners to public service.

In Episode 13 of “The Institutional EDge,” host Angelo Calvello explores an innovative co-investment approach with IPERS' CIO Sriram Lakshminarayanan and Senior Investment Officer Craig Payne. Managing $47 billion with a nine-person team, IPERS maintains a selective <5% co-investment acceptance rate while requiring three-week minimum diligence timelines. Beyond fee reduction, their coinvestment program serves as a deliberate talent development strategy, empowering staff to make consequential investment decisions while testing GP capabilities in real-time. The conversation reveals how hiring "practitioners of investments" creates a knowledge-based culture that attracts sophisticated talent to public service while elevating team conversations from manager selection to investment strategy.

Sriram Lakshmararayanan serves as Chief Investment Officer at Iowa Public Employees' Retirement System, overseeing approximately $47 billion in pension assets. He has transformed IPERS' approach to public and private markets, emphasizing cost-effective beta access and strategic co-investment practices. Craig Payne is Senior Investment Officer at IPERS, focusing on private asset investments including fund commitments and co-investments. With over two decades of private markets experience, Craig previously served as Managing Director and IC Member at BlackRock Private Equity Partners and brings deep expertise in co-investment diligence and portfolio construction to IPERS' innovative approach.

Craig Payne is Senior Investment Officer at Iowa Public Employees' Retirement System (IPERS), where he focuses on private asset investments, including fund commitments and co-investments across real assets and private credit. Craig brings over two decades of private markets experience to IPERS, most recently serving as Managing Director and IC Member at Transition Equity Partners (2022-23). Previously, he served as Director of Private Investments at Olympus Ventures (2020-2022), Managing Director and IC member at BlackRock Private Equity Partners (2007-2019). His earlier career includes roles at General Electric Equity as Vice President (2002-2006), where he managed a $1.6 billion portfolio. Craig holds a BA in Economics and Political Science from McGill University and an MBA in Finance, Entrepreneurship, Strategic Management, and Accounting from the University of Chicago.

In This Episode:

(00:00) Introduction to IPERS co-investment strategy and guest backgrounds

(03:29) Accessing beta cost-effectively across public and private markets

(07:02) Co-investments as a portfolio lever beyond simple fee reduction

(13:13) Independent diligence process and rubber stamp avoidance strategies

(19:24) Managing GP timelines while maintaining fiduciary responsibility standards

(23:39) Hiring practitioners over oversight managers for talent development

(33:25) Empowerment culture drives retention and elevates team conversations

(39:02) Worst pitch stories from decades of private markets experience

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Niche Alpha: Finding Value Beyond Traditional Private Markets

Angelo Calvello — Tue, 28 Oct 2025 08:00:00 +0000

Are you still chasing crowded private equity deals, or have you discovered the niche sectors banks won't touch?

In Episode 5 of the Private Markets Series, Angelo Calvello, host of Institutional Edge, interviews Eric Farls, Senior Portfolio Manager at Maryland State Retirement and Pension System, about the pension fund's strategic pivot from traditional private equity to sector-specific credit investments. Eric explains how Maryland's $4 billion private credit portfolio targets mining finance, sports finance, and music royalties—sectors offering attractive spreads where traditional banks don't aggressively lend. The conversation covers player transfer receivables backed by FIFA enforcement, music royalty resilience through economic cycles, inflation hedging characteristics, and the critical importance of deep GP partnerships for evaluating these niche opportunities.

Eric Farls is Senior Portfolio Manager within the Fixed Income Group at the Maryland State Retirement and Pension System, where he focuses on private credit investments with special emphasis on sector-specific opportunities including mining finance, sports finance, and music royalties. He joined the Maryland State Retirement Agency in February 2011 as a Senior Investment Analyst in the Real Assets Group. Eric is also a member of the Agency's ESG Committee. He earned a Bachelor's degree in Business Administration from the University of North Carolina at Chapel Hill and is a CFA charterholder and member of the CFA Institute and Baltimore Society of Financial Analysts.

In This Episode:

(00:00) Maryland's strategic shift to niche private credit

(05:44) Mining finance sector strategy and investment thesis explained

(09:04) Sports finance opportunities and player transfer receivables landscape

(19:49) Music royalties portfolio and entertainment sector resilience

(29:35) Risk management, GP partnerships and investment implementation approach

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Beyond Banks: How Insurers Are Reshaping Private Credit

Angelo Calvello — Tue, 21 Oct 2025 08:00:00 +0000

How are insurance companies unlocking yield premiums that public markets can't deliver?

In episode 2 of the Private Markets Series, Angelo Calvello, host of Institutional Edge, interviews Leo Svoboda, Head of Enterprise Portfolio Management at Nationwide Investments, about insurance companies' growing dominance in private credit markets. Leo explains how insurers are driving growth in the $2+ trillion private credit space through yield premiums, regulatory capital efficiency, and liability matching strategies. The discussion covers the expanding opportunity set from direct lending to private asset-backed finance, access methods including rated feeders and SMAs, key risks like illiquidity, and the evolution from niche alternative to mainstream financing tool for institutional investors.

Leo Svoboda is the Head of Enterprise Portfolio Management at Nationwide Investments, where he leads the team responsible for asset allocation decisions and top-down investment strategy. Previously serving as Head of Liquid Alternatives focused on hedge funds, emerging market credit, and equities, Leo joined Nationwide in August 2017 from Penso Advisors, a global macro hedge fund. Prior to Penso, he led the Liquid Alternatives effort at UPS Group Trust. Leo is a CFA Charterholder and certified FRM, holding a BSBA from Bowling Green State University and an MBA in Finance with honors from the Wharton School.

In This Episode:

(00:00) Leo Svoboda introduction and background at Nationwide Investments

(03:13) What's driving insurance companies' interest in private debt investments

(06:29) Regulatory benefits and rated feeder technology for insurers

(09:15) How insurance companies access private credit opportunities and structures

(14:28) Portfolio diversification benefits and collateral risk management strategies

(18:35) Global expansion of private credit markets beyond US

(20:13) Benchmarking challenges and goals-focused approach in private markets

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Private Equity in 401(k)s: Democratizing Returns or Democratizing Risk?

Angelo Calvello — Tue, 14 Oct 2025 08:00:00 +0000

In This Episode:

(00:00) Bitcoin volatility and pension implications

(02:19) Introduction – Gerald Alain Chen-Young and democratization overview

(03:39) Principles of democratization and retail investor suitability concerns

(09:48) Threshold requirements and onerous disclosure standards needed

(14:12) Five major risks for DC participants investing alternatives

(19:12) Regulatory complexity and crypto classification challenges ahead

(27:36) Operational readiness and record keeper accountability questions

(35:17) Worst investment pitches and closing thoughts

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Risk-Adjusted Performance of Private Funds: What Do We Know?

Angelo Calvello — Tue, 07 Oct 2025 08:00:00 +0000

What if 35 years of data prove venture capital's high returns aren't worth the risk?

In Episode 2 of the Private Markets Series, Angelo Calvello interviews Professor Greg Brown from the Institute for Private Capital and the University of North Carolina at Chapel Hill about his comprehensive research on risk-adjusted performance across private markets. Brown analyzes 35 years of MSCI data covering venture capital, buyout, private credit, real estate, and infrastructure funds. The conversation reveals that buyout funds consistently deliver approximately 3% alpha, while venture capital's high returns fail to compensate for systematic risk. Brown demonstrates that non-US funds significantly outperform when properly benchmarked against local indices, and simple risk adjustment models provide comparable insights to complex methodologies for institutional investors.

Professor Gregory Brown is the Van Lear and Kay Witherspoon Distinguished Professor of Finance at the University of North Carolina's Kenan-Flagler Business School, where he founded and directs the Institute for Private Capital. He also serves as Faculty Director for the Hodges Scholars Program at UNC. Greg is a leading expert in alternative investments, specializing in private equity, venture capital, hedge funds, and the performance analysis of private markets. His research combines theoretical rigor with practical applications, helping institutional investors make better allocation decisions. Greg's work frequently examines risk-adjusted returns, benchmarking methodologies, and portfolio-level performance across private fund strategies.

In This Episode:

(00:00) Introduction to Private Markets Series Episode 3, Professor Gregory Brown

(03:07) Research framework, data sources, and performance metrics explained

(08:29) Benchmarking methodology and findings for equity funds

(16:02) Debt funds and real asset performance results

(21:53) Overall conclusions and practical guidance for institutional investors

(27:29) Future research directions and portfolio-level analysis

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Building Portfolio Resiliency Through Private Markets

Angelo Calvello — Tue, 30 Sep 2025 08:00:00 +0000

Is diversification dead in private markets?

Welcome to the first episode of our Private Markets Series, featuring Venus Phillips, Managing Director at the Kresge Foundation. Venus discusses building portfolio resiliency through strategic private market allocations, and her team's approach to managing a $2 billion portfolio across buyout, venture capital, real estate, and natural resources. She emphasizes the importance of developing true partnerships with general partners, starting with a "people first" due diligence philosophy. The conversation covers emerging manager investing, secondary market participation, energy transition strategies, and the critical role of transparency and alignment in GP relationships for long-term institutional success.

Venus Phillips is a managing director at The Kresge Foundation where she evaluates investment opportunities and managers across all asset classes for the foundation's endowment. She joined Kresge in 2019 as an investment director focused on private markets including private equity, real estate and natural resources. Previously, Venus served as head of public markets at Fiat Chrysler Automobiles (now Stellantis), leading investment strategy for pension funds and employee savings plans. She has also held positions with Morningstar, University of Chicago Investment Office, NextGen Capital Partners and JP Morgan Private Bank. Phillips holds CFA and CAIA designations and earned degrees from Howard University and University of Chicago Booth School of Business.

In This Episode:

(00:00) Introduction of Venus Phillips, managing director at Kresge Foundation

(02:30) Private market portfolio spectrum and evolution over two decades

(04:05) Defining resiliency as investment objective and portfolio construction strategy

(08:16) Building strategic partnerships beyond capital deployment with GPS

(13:08) Co-investment approach and team structure at Kresge Foundation

(16:27) Secondary markets participation and continuation vehicle strategy

(22:28) Emerging managers focus and alignment benefits for allocators

(24:51) Energy transition investments and ESG integration approach

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Leapfrogging to Multi-Agentic Systems: The Future of Pension Fund Management

Angelo Calvello — Tue, 23 Sep 2025 08:00:00 +0000

What if your pension fund could outperform peers while cutting operational costs in half?

In this episode of The Institutional Edge, host Angelo Calvello interviews Antonio Rodriguez, Director of Investments at Building Service 32BJ Benefit Funds, exploring how multi-agent AI systems could revolutionize pension fund management. Rodriguez argues that resource-constrained allocators can leapfrog traditional technology by adopting AI agents for operational tasks before advancing to investment decisions. "Resource constraints are the engine for innovation," Rodriguez explains, advocating for staging implementation from legal documentation to tactical asset allocation. They discuss implementation challenges, including governance structures, data privacy, vendor selection, and the importance of maintaining human oversight while transforming pension fund operations through AI-enhanced decision-making processes.

Antonio Rodriguez has dedicated his career to responsible investment of working people’s capital. In his current role as Director of Investments for the 32BJ Benefit Funds, he is responsible for the defined benefit pension, health, defined contribution, training, and legal funds for over 170,000 members of SEIU 32BJ, totaling over $10 billion in assets. At the 32BJ Funds, Antonio leads the investment team and advises trustees on investment policy, asset allocation, portfolio construction, and manager selection. Prior to his role at the 32BJ Funds, Antonio was Director of Investment Strategy at the New York City Board of Education Retirement System. Antonio also served as trustee for four of the New York City Retirement Systems (NYCRS) and the New York City Deferred Compensation Plan. Before his various roles at NYCRS, Antonio spent the first part of his career as a union researcher and organizer at the Service Employees International Union, including as Research Director at SEIU Local 1107 and as a member of the SEIU Capital Stewardship team. Antonio has been a member of various boards, including the New York Foundation, the Jobs with Justice Education Fund Board, the CFA Institute’s Global Investment Performance Standards Asset Owner Advisory Committee, and the AIF Global Investor Board. He earned his BSBA in Accounting and History from Washington University in St. Louis and his Master of Arts in History from the City College of New York. He holds the Chartered Financial Analyst (CFA) designation and a Certificate in Performance Measurement.

In This Episode:

(00:00) Introduction and background on AI agents and multi-agent systems

(01:26) Antonio Rodriguez introduction and technology adoption challenges in pension funds

(04:23) Resource constraints driving innovation and leapfrogging opportunities in allocators

(10:27) Staging AI implementation starting with operational and legal tasks

(18:07) Blue sky vision for investment decision-making and committee processes

(28:07) Implementation challenges including vendor selection and data privacy concerns

(39:58) Future of pension management and insourcing investment functions

(47:05) Closing thoughts and worst pitch story

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AI's Winner Take All Effect: How Will AI Reshape the Institutional Investment Industry?

Angelo Calvello — Tue, 16 Sep 2025 08:00:00 +0000

Which three attributes separate AI winners from losers in asset management—and does your firm have them?

Angelo Calvello, host of Institutional Edge, interviews Ajmal (AJ) Hachim, Vice President and co-lead of Berkshire Global Advisors' Financial Technology practice, about artificial intelligence's transformative impact on asset management. Hachim explains why AI has become table stakes for investment firms and discusses strategic implementation approaches through build, buy, or lease models. The conversation explores competitive advantages gained through proprietary data access, organizational culture requirements for AI success, and potential industry consolidation pressures. Hachim identifies three critical attributes separating future winners from losers while addressing concerns about autonomous decision-making and multi-agentic systems in institutional investing.

In This Episode:

(00:00) Guest Ajmal Hachim, AI's winner-take-all effect

(02:28) AI as table stakes for asset managers across all business functions

(06:11) Build, buy, or lease strategies for AI implementation

(09:23) Competitive advantages and industry consolidation patterns

(12:18) Three key attributes for AI winners in asset management

(17:07) Multi-agentic systems and autonomous decision making challenges

(20:31) Big tech hyperscalers entering asset management space

(22:37) Berkshire Global's internal AI initiatives and workflow optimization

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AI Claims vs. Reality: An Asset Allocator's Due Diligence Framework

Angelo Calvello — Tue, 09 Sep 2025 08:00:00 +0000

How do you distinguish substance from hype when managers claim AI implementation advantages?

In this week's The Institutional Edge, Angelo welcomes Chris Walvoord, recently the Global Head of Liquid Alternatives Research and Portfolio Management at AON, where he led a team of 14 supporting Advisory and OCIO businesses across hedge funds, private credit, and opportunistic investments. Walvoord provides a comprehensive framework for allocators navigating the critical challenge of assessing AI implementations in investment strategies, emphasizing that allocators don't need machine learning expertise to effectively evaluate AI claims. The conversation reveals practical methods for distinguishing substance from hype, identifying red flags, and conducting thorough due diligence on AI-enhanced strategies in an increasingly complex technological landscape.

In This Episode:

(00:30) Introduction of Chris Walvoord, former Global Head at AON

(01:15) Hypothetical systematic global macro manager using AI enhancement claims

(04:13) Beyond buzzwords: requiring specificity in AI tool explanations

(05:18) Talent requirements: specialized skills beyond traditional finance backgrounds

(09:41) Data importance: sources, curation, and quality assurance processes

(14:35) AI model types and techniques: understanding specific approaches

(18:45) Testing and validation: building robust models for commercial deployment

(25:10) Red flags in AI due diligence and governance frameworks

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The AI-ESG Paradox: Why Assessing AI's Impact Defies Simple Metrics

Angelo Calvello — Tue, 02 Sep 2025 08:00:00 +0000

What methodological breakthrough is helping institutional investors solve the AI-ESG paradox?

This week, host Angelo Calvello interviews Dr. Liming Zhu, Research Director at CSIRO's Data61 and a leading voice in responsible AI development. Dr. Zhu reveals why traditional ESG metrics fall short when measuring AI's complex impacts, from the staggering energy consumption of model training (equivalent to 350,000 households annually for early ChatGPT) to nuanced second-order effects across stakeholder groups. The conversation explores how AI's diverse applications resist standardized assessment, requiring sophisticated frameworks that capture both immediate environmental costs and long-term societal implications. Dr. Zhu presents the practical assessment methodology he developed with CSIRO colleagues, offering asset owners a pathway through the measurement complexity that defines modern AI investing.

In This Episode:
(00:00) Introduction to AI's environmental impact and energy consumption
(02:00) Carbon footprint breakdown: training versus usage phases
(05:08) Energy sources and renewable scheduling for AI operations
(09:22) Grid stress and national energy infrastructure challenges
(10:57) Resource utilization efficiency and baseline comparisons
(14:39) Water usage for cooling and community impact concerns
(19:38) Human labor implications and global south workforce
(26:49) AI's potential to solve climate problems and accelerate science

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Dr. Zhu's research related to the episode:

The framework:

https://www.csiro.au/en/research/technology-space/ai/Responsible-AI/RAI-ESG-Framework-for-investors
Responsible AI research for a general audience: https://www.csiro.au/en/research/technology-space/ai/responsible-ai
https://www.csiro.au/en/news/All/News/2025/July/2024-25-GenCost-Final-Report
Responsible AI research for technical audience https://research.csiro.au/ss/team/se4ai/responsible-ai-engineering/
Two recent books he co-authored:
https://www.amazon.com.au/dp/0138073929
https://www.amazon.com/Engineering-AI-Systems-Architecture-Essentials/dp/0138261415/
Article I co-authored: https://inv.institutionalinvestor.com/article/2em204zws6p4dnrm00npc/opinion/allocators-do-the-benefits-of-ai-really-outweigh-the-costs
Email Angelo: Angelo.Calvello@pionline.com
Email Julie: julie.parten@pionline.com
Pensions & Investments
Dr. Angelo Calvello LinkedIn

The AI Implementation Gap: What's Stopping Asset Allocators?

Angelo Calvello — Tue, 26 Aug 2025 08:00:00 +0000

"I feel like the adoption of an AI tool could potentially eliminate the need for other existing tools - it might not be a net add, it could be a net efficiency gain." - Melissa Lopez

In this episode, Angelo Calvello of The Institutional Edge interviews Melissa Lopez, former Managing Director at James Irvine Foundation, about AI integration in institutional investment management. With 15 years of endowment and foundation experience managing multi-billion dollar Bay Area portfolios, Lopez reveals why allocators struggle with AI adoption despite clear productivity benefits. She discusses cultural barriers, leadership challenges, and practical implementation strategies, distinguishing between true AI integration and misconceptions about AI exposure through venture portfolios. Lopez advocates for immediate experimentation over wait-and-see approaches, emphasizing relationship-driven business fundamentals while embracing technological transformation for better beneficiary outcomes.

In This Episode:
(00:00) Introduction - Melissa Lopez, AI integration discussion
(01:56) AI benefits for allocators, productivity and operational efficiency
(05:14) Barriers to AI adoption, performance pressures and misconceptions
(08:52) Cultural mindset challenges and leadership awareness issues
(13:16) Build vs lease AI solutions, third party considerations
(18:37) Peer-to-peer communication and industry knowledge sharing
(28:02) Future AI integration timeline and relationship-driven business
(30:57) Worst pitch story, management fee focused manager

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An Asset Allocator's AI Use Cases, Implementation Strategy, and Wishlist with Mark Steed

Angelo Calvello — Tue, 19 Aug 2025 08:00:00 +0000

What happens when a retirement fund's AI models start outperforming human investment decisions?

In this episode of The Institutional Edge, host Angelo Calvello, CEO of Rosetta Analytics, interviews Mark Steed, Chief Investment Officer of the Arizona Public Safety Personnel Retirement System. Mark discusses his hands-on approach to implementing AI in institutional investing, focusing on two primary use cases: operational efficiency through automated document processing and enhanced decision-making via machine learning. The conversation explores practical challenges including data security, board governance, and talent requirements. Mark shares his vision for AI-powered investment workflows and explains how proper governance frameworks can encourage innovation without compromising oversight in retirement fund management.

In This Episode:
(00:00) Introduction of guest Mark Steed, AI innovation discussion
(03:02) AI use cases: operational efficiency and decision making
(09:30) Manager selection process and generative AI applications
(16:37) Building governance frameworks for AI implementation and oversight
(24:44) Key requirements: talent, data, and compute infrastructure
(29:35) Future wishlist: AI-powered investment workflow automation
(32:36) Multi-agent systems and the future of investing
(33:52) Worst investment pitch: Formula One racetrack story

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A Framework for Fiduciary Innovation

Angelo Calvello — Wed, 13 Aug 2025 04:00:00 +0000

What's the biggest mistake asset managers make when implementing AI?

This week on Institutional Edge, host Angelo Calvello sits down with Peter Strikwerda, Global Head of Digitalization and Innovation at APG Asset Management. Managing €616 billion in pension assets, Peter shares APG's groundbreaking framework for implementing AI while maintaining fiduciary responsibility. He reveals how the Dutch pension giant overcomes status quo bias, manages the reality that four out of five AI experiments fail, and transitions from rule-based to principle-based governance. Peter offers practical guidance for asset owners navigating the tension between innovation imperatives and fiduciary obligations, emphasizing that AI isn't just another tool—it's transformative technology that requires strategic embedding throughout the organization.

In This Episode:
(00:00) Introduction- Peter Strikwerda and APG Asset Management
(02:09) Peter's mandate at APG and AI's role in digitalization
(05:33) Responsible experimentation: Creating structured environments within fiduciary boundaries
(15:44) Governance evolution: From rule-based to principle-based AI oversight
(22:33) Risk-adjusted innovation: Managing experimental failure rates and value assessment
(26:39) Scaling methodology: Progressive frameworks from experiments to enterprise deployment
(29:00) Framework for fiduciary innovation and guidance for peers
(31:09) Worst vendor pitches and enterprise-grade standards
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Chapters

(00:00:00) - Real Alpha: A Framework for AI Driven Fiduciary
(00:01:17) - How APG is integrating AI into its investment decision-making
(00:04:40) - Pension IT Strategy: Data Privacy and AI
(00:08:54) - Black Box and the fiduciary obligation
(00:09:48) - Fiduciary Investors on AI and Its Governance
(00:15:01) - WSJD.com: The Challenges of Digitalization
(00:16:47) - The Governance of AI
(00:20:55) - How to Manage the Scientific Uncertainty of AI
(00:21:50) - Fiduciary Innovation in AI
(00:25:43) - Top Executives: AI in Financial Services
(00:27:42) - The Future of AI and the Fiduciary
(00:30:14) - What's the Worst Software Sales Pitch?
(00:32:14) - Podcast

Trailer: Institutional Edge Podcast Launch: Angelo Calvello Partners with Pensions & Investments for AI Investment Series

Angelo Calvello — Mon, 11 Aug 2025 06:45:14 +0000

Welcome to The Institutional Edge: Real allocators. Real alpha! Host Dr. Angelo Calvello introduces his exciting new podcast partnership with Pensions & Investments, designed to cut through the noise in institutional investing. Unlike other investment podcasts filled with vendor pitches and rambling biographical stories, this series delivers focused 30-minute episodes featuring real asset owners who actually deploy capital. The first series, "AI is Transforming Institutional Investing," features conversations with innovative professionals, including Peter Strikwerda from APG and Mark Steed from the Arizona Public Safety Personnel Retirement System. Get ready for authentic insights that challenge conventional thinking and help you make smarter investment decisions.

Chapters

(00:00:00) - The Institutional Edge: Real Allocators Real Alpha