Institutional Investing: Value OR Trips to New York and Silicon Valley?

Going forward, think about why you are doing what you are doing --

You can add value without constantly searching for uncorrelated alpha with low downside volatility.(source infra)

"....Why do most institutions in invest this way? [hedge funds]
1. It’s Interesting
What sounds more stimulating as an allocator of capital?
a) Traveling to New York, Silicon Valley and London for “due diligence” trips to meet with hedge fund, private equity and venture capital managers, getting wined and dined with free food and booze while getting to hear about complicated strategies, alpha, new technologies and ‘what sets us apart.’
b) Finding undervalued asset classes, markets and sectors at a low cost, to achieve a broad diversification and earn multiple streams of beta. You can imagine why most institutional investors choose option a). Don’t get me wrong, these trips are a great perk of the job, but I’m not sure how valuable they are for the organization....2. They Think It’s Their Job to Outperform. . . ." (Read more at the link above)

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