Ed Cole
speaker
303 appearances
1 recordings
1 series
first heard Jun 2026
last heard 29 Jun
Ed Cole’s voice in public audio — every appearance, attributed to the second.
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recordings per month · last 12 monthsRecordings per month over the last 12 months — 1 in all, peaking in Jun 2026 with 1.
Appearances
And the interesting thing about actually a lot of liquid alternatives, hedge funds, is that many of them in fact benefit from higher inflation.
I mean, we've done quite a lot of work at looking at equity long short in different inflationary regimes.
Equity long short tends to do better when inflation's high.
I think the reason for that is because as interest rates move higher, as the refinancing of debt becomes more expensive, companies are required to do more idiosyncratic remedial work to keep their head above water.
But yeah, we think that as inflation moves higher and as interest rates move higher and the cost of debt moves higher, it forces companies to do more.
And that means you get more dispersion.
And that makes a greater opportunity for stock picking, selecting good from bad.
And so returns to equity, market neutral equity, long short strategies get better as inflation goes up.
So that's quite an interesting diversifier.
I think the trick in all this is diversify your diversifiers.
In the past, we didn't need to.
You just bought bonds.
Today, you need to have a much, much broader toolkit.
I think that you go back to the 1980s when the endowment model emerged, which was the sort of Bible of investing across a much broader pool of assets and including privates in it.
There was an illiquidity premium.
If you were an endowment or an asset owner that had a very, very long timeframe for your liabilities, if you required your money over very long periods of time, there was a illiquidity premium that you could harvest, which was if I'm prepared to lock my money up, I will be rewarded for that.
And the cohort of managers providing those services was much smaller.
Today, the universe has grown enormously.
Many people with much shorter liabilities have been pushed into it.
And we can see that the exits for many private companies in the equity space are much more challenged and the returns are diminishing over time.
Showing 241–260 of 303 · page 13 of 16
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