John L Bowman, CFA’s Post

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President at CAIA Association/ Podcast Host/ Board Member/ Investment Committee Chair

Really articulate thoughts from Apollo Global Management, Inc. CEO Marc Rowan on the maturity of private markets: 1. The 3rd bucket idea is long gone 2. Neither public nor private is inherently more risky; sound management and product development are converging the two. 3. The illiquidity premium is going away, but that should have never been the point. 4. Portfolio construction in the DC, wealth mgmt, and retirement services areas are in dire need of a refresh.

“The whole theory of portfolio allocation, where investors have invested in stocks and bonds, and this little bucket called alternatives, because it was risky and private, I believe is going to be rethought.” Apollo CEO Marc Rowan spoke to CNBC about how the continued evolution of financial markets has created the need for a fundamental rethink of portfolio allocation strategies for all types of investors, as we expect the convergence of public and private markets and new product development to accelerate. Watch to learn more about his views on the investment strategies of tomorrow:

Chris Scibelli

ACR Alpine Capital Research | Managing Director

2mo

This clip of Marc Rowan on CNBC espousing a belief that the “evolution of financial markets has created the need for a fundamental rethink of portfolio allocation strategies for all types of investors” is receiving some attention. Mr. Rowan indicates that the varied practitioners that operate within the asset management industry need “to rethink how we allocate”. He points to his own 40 year career as an example: “All of us grew-up against a backdrop of things that we thought were certain and true. Perhaps they’re no longer true.” Mr. Rowan’s sentiments echo Howard Marks’ comparable observation of a “sea change”. The essential message of both men is that certain commonly accepted industry practices and assumptions that are uncritically considered conventional wisdom and consensus thinking may now, decades later, be in need of reconsideration and re-examination - with fresh perspectives and different approaches now worthy of acceptance, implementation and utilization.

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