Larry Kochard
speaker
464 appearances
1 recordings
1 series
first heard Feb 2026
last heard 11 Feb
Larry Kochard’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 Feb 2026 with 1.
Appearances
you look at a portfolio, what are you trying to achieve?
And you have this mix of public and private, and you have this mix across sort of cash flowing, fixed income type assets, and then riskier equities.
And you're trying to create this portfolio balance.
And you're trying to create this balance between deflation and inflation as two broad risks that are facing you as a portfolio manager.
And so you think of equities as providing growth in the portfolio over a longer period of time, fixed income protecting against deflation, and real assets broadly as protecting against inflation.
And it's a nice story.
It holds together really nicely.
And a lot of asset owners have some degree of kind of justifying their asset allocation using that type of argument.
What I've kind of drawn the conclusion of after many years is, A, this is nothing new, that during inflationary times, equities tend to go do badly initially.
only because what typically happens is the central banks tend to tighten into that, which causes a problem with stock prices.
So that's partly why they initially will sell off, in addition to the fact that there's some economic costs associated with inflation.
But over a long period of time, equities are a real asset.
To the extent that companies have pricing power, they can pass along cost increases, and it's a real asset.
As opposed to fixed income, anything where the cash flows are fixed,
that does worse in inflationary environment, anything that the cash flows can go up with inflation is essentially still a real asset.
So over a long period of time, I have a bias to more just equities as opposed to real assets in the portfolio, because so much of the way or the way people or allocators implement real assets is through private real assets.
And my observation over extended vintages is that private real assets almost, not all the time, but a vast majority of the time underperform private equity buyout, growth equity, and venture.
And so I'd much rather use my private, again, to the extent that there's a budget that you have, there's a constraint in terms of how liquid you can get.
I'd rather use that
private illiquidity budget with buyout growth equity and venture than I would private real assets.
Showing 321–340 of 464 · page 17 of 24
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