Matt Bank - GEMs on Risk, Asset Allocation, and Manager Selection (EP.419)

Selection Criteria

Matt Bank, Deputy Chief Investment Officer at GEM, emphasizes the importance of understanding the incentives of other limited partners (LPs) when selecting managers. He notes that the LP base can influence a manager's decision-making process, especially during market downturns. "You do really want to be aware of who else is in here," Matt explains, highlighting the potential pressures managers face from influential LPs 1. GEM's approach focuses on aligning portfolios with client goals, balancing equity exposure and liquidity needs, and considering passive versus active strategies 2.

   

Deal-by-Deal

GEM's deal-by-deal analysis offers deeper insights into manager performance compared to traditional fund commitments. Matt shares that this approach allows for real-time engagement with managers, providing transparency and the ability to build conviction before committing to a fund 3. "One of the things we've done is just get in earlier and do things on a deal-by-deal basis," he states, emphasizing the value of early involvement 3. This method also helps GEM navigate the complexities of various investment strategies and maintain a robust sourcing apparatus 1.