View
222
Download
0
Category
Preview:
Citation preview
8/9/2019 Innovative Alternative Strategies
1/29
The Premier Alternative Investments Eventdesigned exclusively or fnancial advisors, wealth managers and amily ofces!Featuring Jon Corzine, Roger Ibbotson and Tom Ricketts
Presented by
supplement to july 2010 financial advisor magazine
How Advisors CAn ACHieve Portfolio diversifiCAtion And AlPHA
Innovative Alternative Strategies
july 2728, 2010 westin chicago river north
8/9/2019 Innovative Alternative Strategies
2/29
Dear Colleague:
Financial Advisorand Private Wealth magazines are delighted to invite you to our rst Innovative Alternative Strategies
conerence. The events o the last ew years have prompted all o us to engage in serious contemplation about investing and
nancial planning.
At this two-day event, weve endeavored to bring together some o the nest minds in the investment world and create a
meeting that will stimulate your thinking. As bets a conerence on alternative investments, our distinguished keynote speak-
ers bring diverse backgrounds and accomplishment to the event.
Roger Ibbotson is founder of Ibbotson Associates, a professor of nance at Yale School of Management and apartner in Zebra Capital Management, which manages long/short equity hedge funds.
Jon Corzine is the chairman and CEO of MF Global, a former governor of New Jersey and a former CEO of
Goldman Sachs.
Thomas Ricketts is the chairman and CEO of Incapital, a leading provider of structured notes, as well as
executive chairman/owner of the Chicago Cubs.
But the list of experts on alternative investing at the conference is long. They include Chuck Stucke, co-CIO of Guggenheim
Investment Advisors; John LaPann, CEO and CIO of Federal Street Advisors; George Walper Jr., president, Spectrem Group; and
David Tice, chief portfolio strategist of Prudent Bear Funds, Federated Investors Inc.
John Brynjolfsson, CIO of Armored Wolf LLC, brings more than a decade of experience in investing in alternative real assets
to the meeting. Rick Lake of Lake Partners has spent several decades consulting for some of the nations largest institutional
investors on how to navigate the alternative space.
The conerence also addresses real-world issues acing advisors, such as accessing alternative investments and deciding what role theyplay within a clients overall asset allocation. In addition to examining investments rom a big picture ramework, some sessions will drill
down and scrutinize various strategies, such as managed utures, and asset classes, including real estate, in detail.
Please join us on July 27-28 at The Westin Chicago River North for a chance to explore new ideas and educate yourself while
networking with your ellow proessionals by registering now at www.altinvconerence.com.
We look forward to seeing you in July.
Evan Simonoff , Editor-in-Chief David Smith, Group Publisher
Welcome
58 | innovative alternative strategies | july 2010 www.altinvconference.com
8/9/2019 Innovative Alternative Strategies
3/29
july 2010 | innovative alternative strategies | 59
Contents
Financial Advisormagazine is a pure-play on the
independent nancial advisor market, primarily targeting
independent broker-dealers, aliated-nancial planners
and registered investment advisors. Our circulation of
90,000 is 100% qualied and penetrates virtually the en-
tire nancial planning community, including over 30,000
CFPs, 19,000 RIAs, and members of FPA, NAPFA, AICPA-
Personal Financial Planning Division and IMCA. 100%
of our circulation is requested.
60 Seeking Alpha, Avoiding BetaAdvisors turn to alternative investments in search o returns
without the volatility.
63 Speakers
71 Daily Program
79 Sponsors & Exhibitors
85 Registration and Hotel Information
Private Wealth: Advising the Exceptionally Afuent is the
rst and only magazine to exclusively target advisors,
service providers and other centers o infuence who cater
to the nancial, legal, insurance/risk management and
liestyle demands o the ultra-afuent (those with a
minimum net worth o $10 million). These advisors to
the exceptionally afuent collectively wield the greatest
purchasing power in the world and, as a result, are the
most desirable prospects o nancial and legal proessionals,
luxury brands and other elite service providers.
about the conference producers
8/9/2019 Innovative Alternative Strategies
4/29
Subsequent to the market crash o 08-09, many -
nancial advisors have re-evaluated some o the basic
investing truths theyve held to be sel-evident, such
as modern portolio theory (MPT). While ew doubt
the merits o diversication, which is the oundation
or MPT, more advisors are seeking a broader mix o alternative
asset classes that are less correlated to traditional stocks and
bonds and, in theory, less prone to the gut-wrenching volatility
swings that have seemingly become the norm o late.
And or some advisors and their clients, the recent fash crashhammered home that point. Its almost good to have those
events to use as examples o why we own them [alternatives] in
the portolio, says Daniel Roe, a principal at Budros, Ruhlin & Roe
Inc. in Columbus, Ohio. Its not about keeping up with the upside
o equities in bull markets, its about downside protection and the
chance to outperorm bonds over the next ew years.
Roe says all o his rms clients get an allocation to alternatives
through a combination o one o our dierent strategies they em-
ploy via three open-end, or 40 Act, unds and one private und.
We dont orce these down clients throats, Roe says. They
can exclude them i they want. But we educate them so theyll
hopeully better understand these positions over time.
More Choices
Alternative investments come in many dierent shapes in the
orm o hedge unds and hedge-style approaches that include
long-short, event driven, market-neutral, global macro, merger
and convertible arbitrage, relative value, directional/tactical,
managed utures, distressed debt, short bias and options strate-
gies. Many o these are long-term, illiquid strategies.
Long the domain o institutional investors, as well as qualied
individual investors with the deep pockets to pay minimums
ranging rom $1 million to $5 million, the alternative space has
expanded in recent years thanks to the growing number o 40
Act mutual unds that have brought alternatives to the masses
through low-cost vehicles with daily liquidity.
These unds come with restrictions such as limits on the
amount o leverage and illiquid securities they can use,
which cuts into their potential returns. On the fip side, it
also limits their potential losses since theyre designed to
be less volatile than pure hedge unds.
According to a recent study rom SEI and Strategic Insight, the
U.S. alternative mutual und and ETF space grew rom $90 bil-
lion in assets at year-end 2008 to $168 billion at year-end 2009.There are now roughly 400 such unds in the U.S.
Don Wilson, partner and director o portolio manage-
ment at Brightworth in Atlanta, says the wealth manage-
ment rm started using alternatives in 2003 because it
was dissatised with how stocks and bonds perormed a-
ter the tech wreck. We saw that alternative strategies did
well during that period, and we wished we had some o
that in our portolio, he says.
Brightworth started out with a mutual und employing
a long-short equity strategy. Since then, Wilson says, it has
beeed up its alternative mutual und oerings across a
range o strategies including tactical allocation, real return,infation-protected, hedged equity, market-neutral and dis-
tressed real estate.
And along with mutual unds, Wilson says Brightworth
invests in limited partnerships via unds o hedge unds.
These include long-short, distressed debt, global macro
and various arbitrage strategies.
Theyve given us the returns were looking or over ull
market cycles, Wilson says.
Regarding due diligence, Wilson says 40 Act alternative
unds are airly easy to research because theres a publicly
traded universe to compare them against peers and to identiy
managers track records.
Seeking Alpha,Avoiding Betaadvisors turn to alternative investments in searchof returns without the volatility. | by jeff schlegel
60 | innovative alternative strategies | july 2010 www.altinvconference.com
8/9/2019 Innovative Alternative Strategies
5/29
july 2010 | innovative alternative strategies | 61
Feature
8/9/2019 Innovative Alternative Strategies
6/29
62 | innovative alternative strategies | july 2010 www.altinvconference.com
Due Diligence
But as Wilson and others know, perorming due diligence
on unds o unds is more diicult. For starters, there arentreams o public data to pore over because a lot o hedge
unds dont report their numbers.
A lot o the best managers arent ocused on gathering
assets, says Stephanie Lang, senior analyst in the invest-
ment department at Homrich Berg Wealth Management
in Atlanta. Theyre very protective o their inormation and
they arent required to report to databases. To get more
granular inormation, you have to get it rom the manager.
She says the typical portolio or a Homrich Berg client com-
prises roughly 30% alternative assets. O that, about 25% are in
hedged portolios comprising unds o unds or 40 Act unds.
The rest, as much as 7%, is in private equity-like vehicles such
as a private real estate und or a natural resources und.
Lang says her rm has ound good und o hedge und man-
agers through other investors. At times, unds contact her rm
seeking investor money. She says hedge und marketing people all
claim to represent great managers, so advisors planning to investin the space need to dig in and do serious due diligence.
With unds o unds, Lang says her research is ocused on the
people who select the underlying managers. Ater all o the
raud o the past couple o years, its become really important
to understand their operational due diligence, Lang says.
These outts should have a separate team doing opera-
tional due diligence that both veries all o their third-party
service providers and ollows the fow o money to make sure
all o it is there.
A lot o the high-prole rauds occurred because managers
were using aliated or ctitious service providers, Lang says.
Private Funds
Regarding private investment managers, thats a tougher
nut to crack in terms o getting access. Lang says one way to
do that is to work through a placement agent who does und
raising or private investment groups. That said, a lot o suc-
cessul private investment groups dont use placement agents
because they dont need help to raise money.
Diligent, in-depth research is a must beore investing with
private unds. To screen managers, well get their oering doc-
uments, assess their strategy, market opportunity, team and
track record, Lang says. I they still look attractive, well move
orward with additional due diligence.
For example, she adds, i we look at an energy manager and
they buy oil and gas wells, we ask whos making the decision on
buying the wells and whats their experience and track record.And whatre the income risks rom the wells and what are they
doing to hedge that i appropriate?
We ocus a lot on the downside, Lang says. They also have to
have attractive enough returns to lock up money or ten years.
Worth The Price?
Michael Reed, president o M.J. Reed Investment Consulting
in Bridgewater, Conn., says a lot o olks got interested in alter-
native investments several years ago thanks to press coverage
o the investing prowess at the endowments or Harvard and
Yale universities, both o which were heavy into alternatives.
But he says people mightve jumped in at the wrong time.
What happened in 2008 took a lot o wind out o the
sails o what people expected, says Reed, a ormer hedge
und manager in Morgan Stanleys proprietary trading
group who recently set up his own RIA. He says most hedge
und strategiesmanaged utures was a noticeable excep-tioninished 2008 in the red. Various alternative strate-
gies might have outperormed the overall markets during
the crisis, but Reed questions whether their relative outper-
ormance justiied their high ees.
Reed also says that hedge und returns have converged
toward traditional asset classes as alternatives increased in
popularity, a situation making it harder to exploit some o
the ineciencies that made them potentially protable in
the rst place. Convertible arbitrage is a classic example o a
strategy that used to be highly protable but where most o
the alpha has gone away the past ve or so years, he says.
Given their ee structures, I dont know i they have the al-pha to overcome the ees they charge, Reed says.
Still, judging by the growing popularity o hedge-like strate-
gies, its an investment strategy in demand. And based on the
experiences o the advisors interviewed or this story, alterna-
tives can play a constructive role in portolio diversication,
provided one does research and allocates them properly.
Alternatives arent or everyone, Lang says. We wouldnt
do it i we elt it wasnt appropriate or a client in terms o their
liquidity and income needs.
Its hard to time these things, she adds. We want peo-
ple to do multiple unds over multiple years to get good
diversication.
Feature
hedge fund strategies have converged toward traditionalasset classes as alternatives increased in popularity.
8/9/2019 Innovative Alternative Strategies
7/29
july 2010 | innovative alternative strategies | 63
Speakers Tom W. Anderson
Vice Chairman and FounderPENSCO Trust CompanyTom Anderson is a recognized nationalexpert on sel-directed IRAs who hashosted his own radio show, Maximiz-ing Your IRA, and appeared on CNBCsPower Lunch. PENSCO Trust enables itsclients to place non-traded investmentssuch as real estate and private place-ments in IRAs.
Richard ArnitzExecutive Vice President, SalesGrubb & Ellis Securities Inc.Richard Arnitz is responsible or the salesand marketing o the companys publicand private investment programs, includ-
ing public non-traded real estate invest-ment trusts (REITs) and tenant-in-common(TIC) oerings or 1031 exchanges. He hasmore than 23 years o experience in thenancial services industry.
Matthew BalakerSenior Investment Analyst
Mickelson Investment Management LLC
Matthew Balaker is an analyst or Mickel-sons Micro PIPE Fund I. He ormerly servedas an investment ocer at Bristol Capital
Advisors LLC, where he worked or eightyears and participated in over 300 invest-ments. Mr. Balaker speaks at many industryconerences, oten discussing issues relatedto private investments in public equity(PIPE) transactions.
James BittmanSenior InstructorThe CBOEs Options InstituteJames Bittman is the author o ourbooks about options trading and teachescourses on the topic or public andinstitutional investors. He began histrading career in 1980 as an equity op-tions market maker at the Chicago BoardOptions Exchange. From 1983 to 1993, hewas a commodity options member o theChicago Board o Trade.John BrynjolfssonChie Investment Ofcer
Armored Wol LLC (Sub-advisor to Eaton
Vance Commodity Strategy Fund)
Prior to orming Armored Wol, John
Brynjolsson spent 19 years at PIMCO,where he created and grew the RealReturn platorm to $80 billion. He holds abachelors degree rom Columbia Collegeand a masters degree rom the MIT SloanSchool o Management.
Tom CapassePrincipal
Waterall Asset Management LLC
Tom Capasse is a principal o Waterall, aleading asset backed securities and non-
perorming loan manager with $1.3B AUM.A pioneer in the securitization marketas a ounding member o Merrill Lynchsindustry-leading ABS Group (1983-1994),Capasse subsequently managed principalnance groups at Greenwich, Nomura andMacquarie beore co-ounding Waterall.
Innovative Alternative Strategies
8/9/2019 Innovative Alternative Strategies
8/29
64 | innovative alternative strategies | july 2010 www.altinvconference.com
Cleo C. ChangVice President
Wilshire AssociatesCleo Chang joined Wilshire in 2005 andis head o the rms investment researchgroup. She has more than nine years o ex-perience in the asset management industry.Chang is responsible or making strategicand tactical asset allocation recommenda-tions, creating customized investment solu-tions and portolio risk modeling.
Peter CookChie Investment OfcerPerormance Trust Investment AdvisorsPrior to joining PTIA, Peter Cook previous-ly managed assets or Rochester Partners,a long/short equity und, and TempletonGlobal Advisors, and was vice president ininterest rate and currency swaps at UBS.Cook received a bachelor o science in ac-countancy rom University o Illinois andan M.B.A. rom University o Chicago.
Jon CorzineChairman and CEOMF Global Holdings
Jon Corzine is ormer chairman and CEOo Goldman Sachs and a ormer New Jer-sey governor and U.S. senator. Under hisleadership, Goldman Sachs successullyconverted rom a private partnership toa public company. As senator, Corzineco-authored the Sarbanes-Oxley Act o2002 in reaction to a wave o nationalinancial scandals.
Stephen CucchiaroPresident and Chie Investment Ofcer
Windward Investment ManagementStephen Cucchiaro has researched theglobal capital markets or more than 30years. He has a mathematics degree romMassachusetts Institute o Technology andan M.B.A. in nance rom the WhartonSchool. In the late 1970s, Cucchiaro quali-ed or the U.S. Olympic yacht racing teamand was a gold medalist in the 1979 PanAmerican Olympic Games.
Steffan DyeSenior Vice President
Ridgewood EnergyStean Dyes interest in oil and gaseconomics started at an early age, whilehe was growing up in the West TexasOil Patch. Dye and his team have raisedover $500 million or Ridgewoods Energyunds in the last ve years, with invest-ments in some o the largest energyprojects in the Gul o Mexico.
Jack DzierwaGlobal StrategistU.S. Global InvestorsJack Dzierwa evaluates international op-portunities or U.S. Global Investors andperorms analysis o individual companiesand macro-theme development in bothdeveloped and emerging markets. He wasormerly a director in the emerging mar-kets research department at ING FinancialMarkets in London.
Theodore P. EndersVice President and Portolio StrategistGoldman Sachs & Co.
Theodore Enders joined GSAM in 2004,ater developing quantitative tradingmodels and managing a und o undsor a Boston alternative investment rm.From 2000 to 2002, he was an equity re-search analyst at Merrill Lynch, and rom1996 to 2000, he was a corporate strate-gist with Morgan Stanley.
Mark EnmanHead o Global MacroMan Investments
Mark Enman is head o global macro inthe hedge und research area o ManInvestments multi-manager business. En-man, based in New York City, previouslyheaded RMF Investment Managementsglobal macro team. He also has worked atArden Asset Management, a New York-based und o hedge unds, and DresdnerKleinwort, a ormer British-based invest-ment bank.
8/9/2019 Innovative Alternative Strategies
9/29
july 2010 | innovative alternative strategies | 65
Speakers
Michael R. EschmannVice President, Business Development
Direxion SharesMichael Eschmann leads Direxions ETFsales eort and develops and maintainsstrategic relationships with the institu-tional and retail investor base. He hasnearly ten years o experience in sales andtrading, including seven years in institu-tional xed-income sales at Merrill Lynch.
Adam FriedmanVice PresidentIncapital LLCAdam Friedman joined Incapitals Struc-tured Investment Group our years agoater 15 years o industry experience,most recently with Bank o Montreal.He is responsible or the distribution ostructured notes and CDs across all assetclasses, including single stocks, indices,commodities, oreign exchange, creditand xed income.
Philip H. GockeManaging DirectorOptions Industry Council
Philip Gocke has been the managingdirector or institutional education andresearch or the Options Industry Councilsince 2005. He is also president o the op-tions trading rm Brite Sky LLC and waspreviously CEO o VDM Options LLC.
Mark GreenChie Investment OfcerOxord Financial Group Ltd.Mark Green has 20 years o investmentmanagement experience serving private
and institutional clients, and has hadextensive experience with traditional andnon-traditional investment strategies,including hedge unds, private equity, realestate and illiquid investments.
Suzanne HamiltonHedge Fund Manager
Legacy Capital Fund LPSuzanne Hamilton has been managingportolios or 11 years, using her 18 yearso computer security and mathematicsexperience to automate the managemento risk in supporting trading strategies.Prior to ounding Legacy Asset Manage-ment Inc., she was CEO o SECURIX, Inc.
Ryan HarderSenior Portolio ManagerRydex|SGIRyan Harder leads the portolio manag-ers and analysts who manage many oRydex|SGIs alternative unds, as well asthe rms leveraged and inverse unds.Harder was previously an equity researchanalyst and assistant portolio manager atWestLB Asset Management.
Joanne HillHead o Investment StrategyProFunds GroupJoanne Hill is responsible or research,
development and dissemination oinvestment strategies using ProFundsETFs and mutual unds. She was ormerlywith Goldman Sachs or 17 years. Hill haspublished extensively on quantitativeinvestment topics and derivatives, withrecent articles in the Financial AnalystsJournal, Journal o Portolio ManagementandJournal o Trading.
Christopher HoltFounder and Managing Editor
AllAboutAlpha.comChristopher Holt is head o industryrelations in the Americas or the Char-tered Alternative Investment Analyst(CAIA) Association and the ounder andmanaging editor o AllAboutAlpha.com,a Web site covering research, analysisand opinion on alternative investments.He holds an M.B.A. rom Duke Universityand is a CAIA.
8/9/2019 Innovative Alternative Strategies
10/29
66 | innovative alternative strategies | july 2010 www.altinvconference.com
Brian K. HurstPrincipal
AQR Capital ManagementBrian Hurst has been with AQR Capitalsince its inception in 1998. He has morethan 15 years o experience managingmoney or institutional investors in bothtraditional and alternative investmentstrategies . He is currently the head oAQRs Global Trading Strategies group.Prior to AQR, he worked at Goldman,Sachs & Co.
Roger G. IbbotsonFounderIbbotson AssociatesRoger Ibbotson is ounder o Ibbotson As-sociates, a registered investment advisorand wholly owned subsidiary o Morning-star Inc., and a proessor o nance at theYale School o Management. Morningstaracquired Ibbotson Associates in March2006 and Ibbotson now acts in a manage-ment advisory role or Morningstar.
Jeff JosephCo-Founder and Managing Partner
Prescient Capital PartnersJe Joseph is an active angel investor,venture catalyst and nancier. As a ormerRIA and the ounding managing direc-tor o the Alternative Strategies group atRydex Investments, Josephs expertise liesat the intersection o amily oces andalternative investments. Joseph writesa blog or RIAs that allocate to privateinvestments at www.venturepopulist.com.
Edwin Kelly
Director o EducationSterling Trust, an afliate oEquity Trust CompanyEdwin Kelly is a recognized sel-directedIRA expert who has educated thousandso investors, advisors and nancial proes-sionals each year on the concept o sel-directing with alternative assets. He alsoinstructs advisors on strategies or busi-ness expansion and alternative investing.
Samson KooHead o Equity & Funds Structured Markets
Origination, Americas, Barclays CapitalSamson Koo is responsible or a team onancial engineers/structurers who useequity and hybrid derivatives to designsolutions or Barclays clients in theAmericas. He has been in the derivativesindustry or more than ten years and hasocused at dierent times on derivativesin equities, interest rates, currencies andcommodities.
Frederick C. Rick LakeCo-Founder and Co-ChairmanLake Partners Inc.Frederick C. Rick Lake oversees LakePartners research on mutual unds thatutilize alternative strategies and helpsdirect the companys asset allocation,investment research and multi-managerinvestment programs. He has 29 years oexperience in the investment industry.Rick has been quoted in Barrons, TheWall Street Journal, Financial Times andother publications.
Stephanie S. LangSenior Investment AnalystHomrich Berg Wealth ManagementStephanie S. Lang joined Homrich Berg in2005 ater more than two years at Bank oAmericas private bank, where she man-aged over $350 million in assets or indi-vidual and amily trust, charitable trust,oundation and retirement accounts. Shespent six years as an equity research asso-ciate analyst with Robinson Humphrey.
John LaPannPresident and Chie Investment OfcerFederal Street AdvisorsJohn LaPann brings more than 30 years ohigh-level investment and planning expe-rience to his role as president o FederalStreet Advisors. He previously served assenior vice president o Gannett, Welsh &Kotler and spent seven years as vice presi-dent o Pell, Rudman & Company.
8/9/2019 Innovative Alternative Strategies
11/29
july 2010 | innovative alternative strategies | 67
Speakers
Robert D. LeinbachPresident
Walton USARobert D. Leinbach joined Walton in 2005and became the head o operations inApril 2007. He was ormerly a partner inthe law rm o Wole Leinbach P.S., a Seat-tle-based rm specializing in representingcompanies and their executives. Duringthat time, he assisted The Walton Groupwith their entry into the U.S. market.
Alan LenahanManaging Principal/Director o HedgedStrategies, Fund Evaluation GroupAlan Lenahans responsibilities includeserving as portolio manager o FEGsAccess Funds, as well as strategy researchand due diligence management. In 2007,Lenahan was named one o the 20 ris-ing stars in hedge unds by InstitutionalInvestor News.
Robert LindnerCEO, Chairman o the BoardLindner CapitalRobert Lindner earned his undergradu-
ate degree rom Mercer University andhis graduate degree rom the Ameri-can College. He is a licensed CertiiedFinancial Planner. Lindner serves on theexecutive boards o the Atlanta HumaneSociety and the Georgia Chapter o theMarch o Dimes.
Tom LydonEditor and PublisherETF TrendsTom Lydon is editor and publisher oETF
Trends, a Web site with daily news andcommentary about trends in the ETFindustry. He is also president o GlobalTrends Investments, an investment advi-sory rm specializing in the creation ocustomized portolios or high-net-worthindividuals.
Michael L. MastersonExecutive Vice President
Goldman Sachs Trust CompaniesMichael L. Masterson is responsible oroverseeing all aspects o asset manage-ment and representing Goldman Sachspersonal trust investment managementcapabilities to clients, prospects andintermediaries. He was ormerly a seniorportolio manager at Brown Brothers Har-riman in New York.
Michael MasteySVP, Managing Director o AlternativeInvestments, PNC Capital AdvisorsMichael Mastey is in charge o developingand growing PCAs proprietary alterna-tive investment product platorm andis directly responsible or all aspects oproduct management, strategic prod-uct development and risk managementoverlay. He chairs the rms AlternativeInvestment Risk Management Committee.He also plays a strategic role in alterna-tive investment sales development andmarketing or the complex.
W. Bradford McMillanVice President, Chie Investment OfcerCommonwealth Financial NetworkW. Bradord McMillan leads Common-wealths Investment Research, AdvisoryServices, Asset Management and Invest-ment Consulting teams. He is a requentguest speaker at industry conerences,including BMO Capital Markets Non-Traded REITs Forum, the InormationManagement Network Symposium andthe FPA National Capital Area Chapter.
Ed McRedmondSenior Vice PresidentInvesco PowerShares Capital ManagementEd McRedmond works on increasingthe awareness and usage o PowerSharesETFs within various distribution chan-nels, with a ocus on working with ana-lysts, due diligence groups and portoliomanagers who develop ETF portoliosand investment strategies. He oversees ateam that services the institutional and
international channels.
8/9/2019 Innovative Alternative Strategies
12/29
68 | innovative alternative strategies | july 2010 www.altinvconference.com
David MickelsonPresident and Portolio Manager
Mickelson Investment Management LLCDavid Mickelson manages the Micro PipeFund I and is also the president o Mick-elson Capital Consulting. He has morethan 15 years o experience in nancialservices and specializes in advanced estateplanning and investment management.Mickelson lectures on nancial strategieswithin wealth building, estate planningand charitable contexts.
Robert MileffDirector, Alternative InvestmentsFortigent LLCRobert Mile is responsible or research-ing, selecting and monitoring hedge undsand other non-traditional investmentsolutions or client portolios and assistsin Fortigents asset allocation and porto-lio construction processes. Beore joiningFortigent, Mile spent several years atMonroe Vos Consulting.
Trisha MillerNational Sales Manager
Carey Financial LLCTrisha Miller oversees Carey Financialswholesaling team and the internal salesdesk. A 23-year veteran o the inancialservices industry, Miller has extensiveexperience working and developing rela-tionships with nancial advisors inall channels.
Martin MurenbeeldChie EconomistDundeeWealth
Martin Murenbeeld is publisher o theGold Monitor. He has 30 years o researchand consulting experience in gold and pre-cious metals, currency, oreign exchangeand credit markets. He graduated rom theUniversity o Caliornia, Berkeley, in 1972with a Ph.D. in international nance.
Steven QuirkManaging Director, Trader Group
TD AmeritradeSteven Quirk is responsible or the devel-opment o new trading tools and technol-ogy enhancements or TD Ameritradestrading platorm. His 22-year tradingcareer began in 1987 as a Chicago BoardOptions Exchange market maker. Whileat the CBOE, he served on the exchangesIndex Market Perormance Committeeand the Arbitration Committee.
Michael ReedPresidentM. J. Reed Investment ConsultingMichael Reed is president o M. J. ReedInvestment Consulting, an independentregistered investment advisor in Bridgewater,Conn., specializing in investment planning,tactical asset allocation and und selectionor afuent individuals and small institutions.From 1994 until 2009, Reed was a member othe Process Driven Trading group o MorganStanley. Reed has a Ph.D. in electrical engi-neering rom Princeton University.
Carl ResnickManaging Director, Portolio StrategistRydex|SGICarl Resnick provides strategicguidance on product management,new business development and proit-ability or the irms asset allocationand target beta und lineup within theinstitutional marketplace. Previously,Resnick was a national sales manager oETF and institutional sales and a variabletrust wholesaler.
Tom RickettsChairman and CEOIncapital LLCTom Ricketts co-ounded Incapital LLCin 1999. Ricketts previously served as vicepresident o ABN AMRO, where he pio-neered the use o the Internet and othertechnology so that companies could oertheir investment-grade bonds through anetwork o broker-dealers and advisoryrms. In 2009, Ricketts became executive
chairman o the Chicago Cubs.
8/9/2019 Innovative Alternative Strategies
13/29
july 2010 | innovative alternative strategies | 69
Speakers
Dan Roe, CFPPrincipal and Chie Investment Ofcer
Budros, Ruhlin & RoeDan Roe has been advising clients in thenancial services industry or more than20 years. Prior to joining Budros, Ruhlin& Roe in 1996, he owned his own ee-onlywealth management practice in Cincin-nati, Ohio. His primary ocus has beenon portolio management issues, but hisproessional expertise extends to insur-ance, tax and retirement planning.
Kevin M. Snchez, CIMA, CFPVice President Investments,Institutional ConsultantUBS Institutional ConsultingKevin Sanchezs $1.7 billion practice o-cuses on investment policy and portoliodesign or 26 oundations and endow-ments. His team also provides compre-hensive wealth solutions or a limitedgroup o afuent amilies. Kevin hasan MBA in Finance rom the Universityo Oregon and the CIMA designationthrough the Wharton school and IMCA.
Kenneth Settles, CFACo-Portolio ManagerRS Global Natural Resources FundKenneth Settles is a co-portolio managero RS Global Natural Resources Fund.Prior to joining RS Investments, he wasa senior energy analyst or seven years atNeuberger Berman LLC, where he also co-managed the Neuberger Berman PremierEnergy Portolio. Settles holds a B.A. ineconomics rom Williams College.
Luciano SiracusanoChie Investment StrategistWisdomTreeLuciano Siracusano oversaw the cre-ation and development o WisdomTreesproprietary index methodology andother intellectual property. Beore joiningWisdomTree in 1999, he was an equityanalyst at Value Line Inc. Prior to hiscareer in nance, Siracusano served asSpecial Assistant to New York GovernorMario Cuomo. Luciano is a graduate o
Columbia University.
Evan SimonoffEditor-in-Chie and Editorial Director
Financial Advisor andPrivate Wealth magazinesEvan Simono is editorial director oFinancial Advisorand Private Wealthmagazines and is a ounding partner oCharter Financial Publishing Network(CFPN). He has spent more than 20 yearsas an editor and reporter covering thenancial services industry. Simono isa widely recognized expert on personalnance and investments.
Christopher SkardonPortolio ManagerGorelick Brothers CapitalChristopher Skardon has more than15years o trading and investment experi-ence in structured nance securities.Beore joining Gorelick, he was a managingdirector at Banc o America Securities LLC.Skardon has held senior investment andtrading roles at American Capital Access,Prudential Securities and Deutsche BankSecurities. He is a Yale University graduate.
David SmithCo-Founder and Group PublisherFinancial Advisor andPrivate Wealth magazines
David Smith is a ounding partner oCharter Financial Publishing Network(CFPN), a publisher, marketer and distribu-tor o inormation or the nancial servicesindustry. He is co-ounder and publisheroFinancial Advisorand Private Wealthmagazines and other CFPN publications.
Ken StebenPresident and Chie Executive OfcerSteben & Company Inc.Ken Steben ounded Steben & Company Inc.,which specializes in managed utures unds.He is viewed as a pioneer in the managedutures und business, having introducedhundreds o nancial advisory rms to thisinvestment strategy over the last 20 years.
8/9/2019 Innovative Alternative Strategies
14/29
70 | innovative alternative strategies | july 2010 www.altinvconference.com
Speakers
Charles (Chuck) StuckeChie Investment Ofcer
Guggenheim Investment AdvisorsChuck Stucke chairs Guggenheims Invest-ment Committee and leads the PortolioManagement Group. Prior to joiningGuggenheim in 2006, Stucke served as anexecutive director on the Portable AlphaTeam at Morgan Stanley Alternative Invest-ment Partners, where he opened and man-aged the rms London-based Europeanalternative investments research oce.
David W. Tice, CFA, CPAChie Portolio Strategist, Bear MarketsFederated Investors Inc.David W. Tice has been at the oreront obear market investing or more than 20 years,oten taking the role o a Cassandra to warninvestors about the dangers o investing nearthe end o a secular bull market, and hasdebated nearly every bullish Wall Street strat-egist. He launched his own rm in 1988 toprovide clients with hedging or sell disciplineperspectives and recommendations throughhis Behind the Numbers publication.
Mike TimsCEO, mtn-iMike Tims is the ounder and CEO oLondon-based mtn-i, a news service,magazine and database that tracks activ-ity in the structured product and privateplacement bond markets. Since 2006, TheWall Street Journaland Bloomberg haveregularly cited mtn-i or its comprehen-sive coverage o the U.S. markets. Tims isalso an occasional CNBC guest.
Catherine Vaughn Deutsch, CFAManaging DirectorHighbridge Capital ManagementCatherine Vaughn Deutsch is a managingdirector o Highbridge Capital Managementand head o Asset Management. Beore join-ing HCM in April 2006, Vaughn Deutsch waswith Blackstone Alternative Asset Manage-ment, involved with business developmentand product development. Prior to Black-stone, Vaughn Deutsch was a vice presidentwith Banc o America Securities.
George H. Walper Jr.President
Spectrem GroupGeorge H. Walper Jr. is president o SpectremGroup, a research and consulting rm thatspecializes in the afuent and retirementmarkets. Walper has a bachelors degree inbusiness rom the State University o NewYork College at Bualo and an M.B.A. romthe J.L. Kellogg Graduate School o Manage-ment at Northwestern University.
Don Wilson, CFA, CFPDirector o Portolio ManagementPartner, BrightworthDon Wilson is a partner at Brightworth, aleading wealth management rm in Atlanta.His primary responsibilities include develop-ing the rms overall investment strategy,researching investment managers and assetclasses, and leading the investment researchand portolio management team. Prior to hiscurrent role, he was a research analyst andportolio manager or the rm.
Robert L. Worthington, CFAPresident
Hatteras FundsRobert L. Worthington is responsible orday-to-day management and oversight oportolio and risk management, includinginvestment products, personnel and jointventure partner relationships. He also servesas a member on the investment committeeor several Hatteras unds. Prior to joiningHatteras, Worthington was a managingdirector at JPMorgan Asset Management inthe rms Institutional Advisory business.
Marc Zeitoun, CFAManaging Director and Head o DistributionRydex|SGIMarc Zeitoun is head o distribution orRydex|SGI and helps shape the rms stra-tegic direction, with specic emphasis onnancial intermediary and sub-advisorysales. Previously, he was executive direc-tor or Investment Solutions and Fee-Based Platorms and senior vice presidento Investment Process and Integration atUBS Financial Services.
8/9/2019 Innovative Alternative Strategies
15/29
july 2010 | innovative alternative strategies | 71
Pre-Conference Workshop
Present
Innovative Alternative StrategiesThe Westin Chicago River North, Chicago July 2728, 2010
Pre-Conference Workshop July 26, 2010
Platinum SPonSor rydex|SGi
&
Monday, July 26, 2010
Creating a Multi-Family Ofce Practice:Guidelines for Financial Advisors Targeting The Financial Elite
9:00 am 9:15 am Introduction and Overview
9:15 am 9:45 am The Financial Elite
9:45 am 10:15 am The Nature and Appeal o the Family Ofce
10:15 am 10:30 am Break
10:30 am 11:30 am Investment Management Panel
11:30 am 12:30 pm Lunch: Guest Presenter
12:30 pm 1:30 pm Liestyle Services Panel
1:30 pm 2:30 pm Insurance/Risk Management Panel
2:30 pm 2:45 pm Break
2:45 pm 3:15 pm Advanced Planning
3:15 pm 4:00 pm Sourcing the Financial Elite
4:00 pm 4:15 pm Summary, Conclusions and Questions
Mickelson Investment Management
Multi-Family Ofce Workshop Sponsors
8/9/2019 Innovative Alternative Strategies
16/29
72 | innovative alternative strategies | july 2010 www.altinvconference.com
Monday, July 26, 2010
12:00 pm 6:00 pm Advance Registration and Exhibitor Booth Setup
Tuesday, July 27, 2010Session times subject to change
6:30 am 4:30 pm Registration
7:30 am 8:15 am Breakast with Exhibitors
8:15 am 8:30 am Chairperson WelcomeMarc Zeitoun, Managing Director and Head o Distribution, Rydex|SGI
8:30 am 9:45 am CIOInvestment Outlook The CIO general session will address both macro and micro issues. Participants will share their
outlook or both the U.S. and the global economy, as well as the direction o the nancial mar-
kets in a post-crisis world (i we are really in one). Other topics include the psychology o both
individual clients and proessional investors, lessons learned about basic tenets o nance like
MPT and buy and hold, and what role alternative investments play in their clients portolios in
the uture.
Moderator: Evan Simonoff,Editor In Chie, Financial Advisor magazinePanelists: Charles Chuck Stucke, Chie Investment Ocer,
Guggenheim Investment AdvisorsJohn LaPann, President and Chie Investment Ocer, Federal Street Advisors Inc.Mark Green, Client Investment Ocer, Oxord Financial Group
9:45 am 10:15 am Morning Networking Break with Exhibitors
10:15 am 11:15 am Breakout SeSSion aOpportunities In A Turbulent Real Estate MarketAlthough real estate has ailed to bounce back in many markets, specialized investment op-
portunities that can provide upside and/or income streams or your afuent clients are worthconsidering. Nontraded REITs, or one, are using the current environment as a chance to buy
attractive properties at depressed values, positioning themselves or growth as the market
rebounds. Our speakers will describe what they are seeing around the country and where the
pockets o opportunity are.
Moderator: W. Bradford McMillan, Vice President and Chie Investment Ocer,Commonwealth Financial Network
Panelists: Richard Arnitz, Executive Vice President, Sales, Grubb & Ellis Securities Inc.Trisha Miller, National Sales Manager, Carey Financial LLCRobert D. Leinbach, President, Walton USA
Agenda
8/9/2019 Innovative Alternative Strategies
17/29
july 2010 | innovative alternative strategies | 73
10:15 am 11:15 am Breakout SeSSion BThe Role o Alternatives In Asset Allocation
Volatility continues to play havoc with the markets, making it increasingly dicult to buildportolios with more consistent returns. Careully selected alternative investments can providealpha and act as hedges, particularly when dicult market conditions are the order o the day.
Learn what to look or in alternative investments and how they can be used to enhance asset
allocation models.
Moderator: To be announced.Panelists: Christopher Holt, Director and Managing Editor, Chartered Alternative
Investment Analyst (CAIA) AssociationRobert Mileff, Director, Fortigent LLCCleo Chang, Vice President, Wilshire Associates
11:20 am 12:20 pm Breakout SeSSion aUsing Futures and Options To Control Risk
Learn how these instruments work, techniques on how to use them and pitalls to avoid. Thepanel will also review how the current market has impacted price swings and how to use them
to control risk.
Moderator: James Bittman, Senior Instructor, The CBOEs Options InstitutePanelists: Steven Quirk, Managing Director, TD Ameritrade
Philip H. Gocke, Managing Director, Options Industry Council
11:20 am 12:20 pm Breakout SeSSion BLie SettlementsInsurance As An Asset ClassInsurance can be used or both wealth creation and preservation, but many individuals dont
realize that new products also make insurance an asset class. Lie settlement unds, or ex-ample, are similar to proessionally managed mutual unds but are created by securitizing many
complete or ractional lie settlement policies or individuals. Like mutual unds, lie settlement
und shares are sold to investors. How LSFs are structured and key actors associated with
them, including risks and returns, will be discussed.
Moderator: David Mickelson, Portolio Manager, Mickelson Investment Management LLCPanelists: Daniel Sheedy, Director o Capital Markets, GWG Lie
Other panelists to be announced.
12:20 pm 1:30 pm Buet Lunch in Main Foyersponsored by
12:50 pm 1:30 pm Keynote AddressTom Ricketts, Chairman and CEO, Incapital LLCGrand Ballroom A,B,C
Tom Ricketts, executive chairman o the Chicago Cubs and chairman and CEO o Incapital LLC,will share insights on the economy and nancial services. While a vice president o ABN AMRO
during the 1990s, he pioneered the use o the Internet and other technology so that com-
panies could oer their investment-grade bonds through broker-dealers and advisory rms.
In 1999, he ounded Incapital, a Chicago investment bank that underwrites and distributes
xed-income securities and structured notes through more than 900 broker-dealers, banks and
institutional accounts in the U.S., Europe and Asia.
Agenda
8/9/2019 Innovative Alternative Strategies
18/29
74 | innovative alternative strategies | july 2010 www.altinvconference.com
Tuesday, July 27, 2010Session times subject to change
1:30 pm 2:00 pm Dessert Break with Exhibitors
2:00 pm 3:00 pm Breakout SeSSion a Managing Risks With Leveraged ETFs The goal o most leveraged ETFs is to attempt to maintain leverage by rebalancing daily and
capturing daily appreciation or shareholders. But these vehicles may result in a portolio that
ails to track its index precisely. What are the most eective uses or leveraged ETFs and how
can risks be managed?
Moderator: Tom Lydon, Editor and Publisher, ETF TrendsPanelists: Joanne Hill, Head o Investment Strategy, ProFunds Group
Ed McRedmond, Senior Vice President, Invesco PowerShares Capital ManagementMichael Eschmann, Vice President, Direxion Shares
2:00 pm 3:00 pm Breakout SeSSion BManaged Futures
The primary benet o adding managed utures to a diversied investment portolio is thatthey may decrease portolio volatility risk. They are able to reduce portolio risk because o
their low to slightly negative correlation with equities and bonds. Experts discuss their use and
why these contracts based on global investments are growing in popularity.
Moderator: Robert Lindner, CEO and Chairman o the Board, Lindner Capital Advisors Inc.
Panelists: Ken Steben, President and Chie Executive Ocer, Steben & Company Inc.Ryan Harder, Senior Portolio Manager, Rydex|SGIBrian Hurst, Principal, AQR Capital Management
3:00 pm 4:00 pm Breakout SeSSion aGlobal Macro And Emerging MarketsGlobal macro hedge unds trade xed income, equity index utures, commodities, currencies
and equities based on global macroeconomic events. A top-down approach is generally used to
make trades and orecast the direction o currency, xed income and equity indices. Although
macro global unds are a small segment o the hedge und universe, some managers have made
billions by correctly anticipating a major world event.
Moderator: To be announced.Panelists: Mark Enman, Head o Global Macro, Man Investments
L. Bryan Carter, CFA, Vice President and Associate Portolio ManagerArcadian Asset Management
Jack Dzierwa, Global Strategist, U.S. Global
8/9/2019 Innovative Alternative Strategies
19/29
july 2010 | innovative alternative strategies | 75
3:00 pm 4:00 pm Breakout SeSSion BAccessing and Deploying Alternatives
In this session, three advisors rom RIA rms that use alternatives will explain what promptedthem to explore alternatives, how they research the vehicles and where they t into the asset
allocation process. Other topics include liquid alternatives vs. illiquid vehicles and how they
accessed the investments, as well as whether their perormance lives up to expectations.
Moderator: Michael Reed, President, M. J. Reed Investment ConsultingPanelists: Don Wilson, Director o Portolio Management, Partner,
Brightworth Wealth ManagementDan Roe, Principal and Chie Investment Ocer, Budros, Ruhlin & Roe Inc.Stephanie Lang, Senior Investment Analyst, Homrich Berg Wealth Management
4:00 pm 4:30 pm Aternoon Networking Break with Exhibitors
4:30 pm 5:30 pm Breakout SeSSion aCurrencies As An Asset ClassForeign exchange is the largest nancial market in the world, but may be unamiliar to many
advisors. In act, until recently, FX was primarily the domain o large nancial institutions, mul-
tinational corporations and hedge unds. But the Internet has made FX ar more accessible, and
this 24-hour market trades about $2 trillion each day. Panelists will discuss these investments
and how they can be used to hedge and add a new dimension to client portolios.
Moderator: To be announced.Panelists: Dr. Martin Murenbeeld, Chie Economist, Dundee Wealth
Carl Resnick, Managing Director and Portolio Strategist, Rydex|SGILuciano Siracusano, Chie Investment Strategist,
WisdomTree Asset Management Inc.
4:30 pm 5:30 pm Breakout SeSSion BHedge Fund ResearchLeading analysts will share their research on hedge unds and discuss how the nancial crisis
and market volatility have aected perormance. Theyll also describe how survivorship bias
and other issues impact research.
Moderator: Evan Simonoff, Editor In Chie, Financial Advisor MagazinePanelists: Frederick C. Rick Lake, Co-Chairman, Lake Partners Inc.
Alan Lenahan, Managing Principal and Director o Hedged Strategies,Fund Evaluation Group
Michael Mastey, SVP, Managing Director o Alternative Investments,PNC Capital Advisors
5:30 pm 7:00 pm Cocktail Reception with Exhibitorssponsored by
Agenda
8/9/2019 Innovative Alternative Strategies
20/29
76 | innovative alternative strategies | july 2010 www.altinvconference.com
Wednesday, July 28, 2010Session times subject to change
7:00 am 12:00 pm Registration
7:30 am 8:15 am Breakast with Exhibitors
8:15 am 8:30 am Chairpersons Recap o Day 1 & Introduction to Day 2Marc Zeitoun, Managing Director and Head o Distribution, Rydex|SGI
8:30 am 9:10 am Investor AttitudesGeorge Walper Jr., President, Spectrem Group
As president o a leading research and consulting rm specializing in afuent and retirementmarkets, George Walper has unique insight into the attitudes and behavior o investors that
he will share during his presentation and that may guide you on how to enhance relationships
with your clients.
9:10 am 9:50 am Whats The Next Big Short?David Tice, Chie Portolio Strategist, Prudent Bear Funds, Federated Investors Inc.David Tice has long taken the role o a Cassandra to warn investors about the dangers o
investing near the end o a secular bull market and has debated nearly every bullish Wall Street
strategist. He gained national recognition when he was among just a handul o courageous
people who dared short the market. Hell provide his thoughts on what investments may be in
trouble next.
9:50 am 10:30 am Morning Networking Break with Exhibitors
10:30 - 11:30 am Breakout SeSSion aUnderstanding Alternative Investment Structuresand Implementing Them In Unexpected PlacesAlternative investments can be an important addition to trusts, LLCs and retirement plans that
want to include investments with returns that are less correlated or uncorrelated to the overall
equity markets. But some specic considerations need to be weighed to ensure those respon-
sible or investment policy are charting a solid course.
Moderator: Kevin Sanchez, Vice President, UBS Institutional ConsultingPanelists: Edwin Kelly, Director o Education, Sterling Trust,
an aliate o Equity Trust Company
Michael L. Masterson, Executive Vice President, Goldman Sachs Trust CompaniesTheodore P. Enders, Vice President and Portolio Strategist, Goldman Sachs & Co.
8/9/2019 Innovative Alternative Strategies
21/29
july 2010 | innovative alternative strategies | 77
10:30 am 11:30 am Breakout SeSSion BAdvisors Explain Their Own Alternative Strategies
Advisors who have integrated alternative investments into client portolios share their insightson choices theyve made that worked out well and some that were less than stellar.
Moderator: Jeff Schlegel, Senior Editor, Financial Advisor magazinePanelists: Jeff Pavlik, Founder, Pavlik Capital Management LLC
Stephen Cucchiaro, Chie Investment Ocer,Windward Investment ManagementSuzanne Hamilton, Hedge Fund Manager, Legacy Capital Fund LP
11:30 am 12:30 pm Breakout SeSSion aUsing Commodities In Clients PortoliosPrecious metals, oil and minerals are amiliar investments to many advisors, but opportunities
are constantly changing, particularly in the volatile markets o the last couple o years. Portolio
managers on this panel will share their experience in navigating these investments.
Moderator: Catherine Vaughn Deutsch, Managing Director,Highbridge Capital Management
Panelists: Kenneth Settles, Co-Portolio Manager, RS Global Natural Resources FundStephen Dye, Senior Vice President, Ridgewood EnergyJohn Brynjolfsson, Chie Investment Ocer, Armored Wol LLC (Sub-advisor toEaton Vance Commodity Strategy Fund)
11:30 am 12:30 pm Breakout SeSSion BNew $11 Trillion Asset Class: Residential Mortgage DebtResidential mortgage debt has emerged as the latest opportunity or high risk-adjusted returns.
Following the housing collapse, or the rst time since the Great Depression, distressed debtis more than corporates. Hedge und managers will detail the latest trades in residential loan
servicing and mortgage-backed securities.
Moderator: Warren Paddock, Director o Investments at Bluview Wealth ManagementPanelists: Peter Cook, Chie Investment Ocer, Perormance Trust
Tom Capasse, Principal, Waterall Asset Management LLCChris Skardon, Portolio Manager, Gorelick Brothers Capital
12:30 pm 1:30 pm Buet Lunch in Main Foyer
12:50 pm 1:30 pm Keynote Address
Jon Corzine, Chairman and CEO, MF Global HoldingsGrand Ballroom A,B,CJon Corzine, ormer chairman and CEO o Goldman Sachs and ormer governor o New Jersey,
uses his high-level government experience and real-world Wall Street acumen to share insight
on alternative investing, economic policy, nancial regulation and the tough political choices
aced by the Obama administration. He is currently the chairman and CEO o MF Global Hold-
ings, one o the worlds leading cash and derivatives brokerage rms, and an operating partner
at J.C. Flowers & Co., a private equity rm ocused on the nancial services sector.
1:30 pm 2:00 pm Dessert Break with Exhibitors
Agenda
8/9/2019 Innovative Alternative Strategies
22/29
78 | innovative alternative strategies | july 2010 www.altinvconference.com
Wednesday, July 28, 2010
2:00 pm 3:00 pm Breakout SeSSion aStructured NotesPanelists will explain the pros and cons o these hybrid securities, which oer returns that track
an underlying debt obligation and a derivative embedded within it.
Moderator: Mike Tims, CEO, mtn-iPanelists: Sam Koo, Head o Equity & Funds Structured Markets Origination, Americas,
Barclays CapitalAdam Friedman, Vice President, Incapital LLCLarry Wilson, Vice President, JP Morgan, Structured Investments
2:00 pm 3:00 pm Breakout SeSSion B Private Equity / Venture Capital
Opportunities in private equity and venture capital are beginning to pick up again. Invest-
ment managers discuss how they evaluate these opportunities and describe how they assess
risk and reward.
Moderator: Tom Anderson, Vice Chairman and Founder, PENSCO Trust CompanyPanelists: Matt Balaker, Senior Investment Analyst, Mickelson Investment Management LLC
Robert L. Worthington, President, Hatteras FundsJeff Joseph, Managing Partner, Prescient Capital Partners
3:00 pm 4:00 pm Keynote AddressRoger Ibbotson, Founder, Ibbotson AssociatesGrand Ballroom A,B,CRoger Ibbotson has a long history in the investment management and research arena and now
is a partner in Zebra Capital Management, which manages equity long/short hedge unds. In
addition, he has directly managed bond portolios, traded equity securities and managed asset
allocation accounts. He is co-author oStocks, Bonds, Bills, and Infation Yearbook, the standardreerence or inormation on investment market returns. Hear his take on the economy, the
markets and how alternative investments t in to the big picture o investing.
4:00 pm Conerence Ends
Agenda
8/9/2019 Innovative Alternative Strategies
23/29
july 2010 | innovative alternative strategies | 79
AQR Capital ManagementAQR Capital Management LLC is a global provider o investment management services. The rm was
ounded in 1998 and is headquartered in Greenwich, Conn. With a diverse, global institutional client
base, the rm oers a wide range o investment products ranging rom traditional benchmark-driven
investments to pure alpha, absolute return strategies. AQR Funds were created to provide mutual
unds investors access to these alternative and innovative strategies.
Aston Asset Management LLCAston Asset Management, headquartered in Chicago, Ill., is a diversied institutional based
investment management rm. Our subadvisors (investment managers) are inherently ocused on
institutional process and investment perormance. Through our selection o institutional quality
investment managers with disciplined investment processes, our goal over time is to produce supe-
rior returns to our benchmarks with less risk. We oer a broad selection o mutual und products
and share classes or both individual and institutional investors. Separately managed accounts are
also available. Consulting with you, we deliver solutions that you can deliver to your clients.
Barclays Capital
Barclays Capitals Investor Solutions team works with investment advisors, such as RIAs, trustcompanies, and multi-amily oces, to create customized structured investments. The team is also
responsible or the sales , strategy, and product development o iPath Exchange Traded Notes.
Carey Financial LLCW. P. Carey and its non-traded real estate investment trust, Corporate Property Associates 17 Global
(CPA:17 Global), are pleased to be participating in the Financial Advisor/Private Wealth Conerence
on Innovative Alternative Strategies. Founded in 1973, W. P. Carey & Co. LLC (NYSE: WPC) is an invest-
ment management rm and leading global provider o long-term net lease nancing or corporations
worldwide. CPA:17 Global, W. P. Careys sixteenth oering, seeks to provide investors with stable,
rising income and capital preservation by ocusing primarily on tenant creditworthiness and invests in
a broadly diversied portolio o real estate assets by region, property type and industry.
FUNDS
Sponsors&
ExhibitorsPlatinum Sponsor
At Rydex|SGI, we are committed to oering investors greater potential to successully navigate diverse market condi-tions. We believe that providing high-quality investment choices, insightul research and investor education is al-
ways in avor. Oering a wide array o alternative investment strategies in addition to index-based and undamentalstrategiesincluding actively managed global, value, growth and fxed-incomewe endeavor to put our investors frstin all that we do. With more than $22 billion in assets under management, Rydex|SGI oers investors more than 100investment choicesincluding mutual unds and ETFs.
8/9/2019 Innovative Alternative Strategies
24/29
80 | innovative alternative strategies | july 2010 www.altinvconference.com
Chartered Alternative Investment Analyst AssociationThe Chartered Alternative Investment Analyst Association is an independent, not-or-prot global
organization committed to education and proessionalism in the eld o alternative investments.
Founded in 2002, the CAIA Association is the sponsoring body or the CAIA designation. Recognized
globally, the designation certies ones mastery o the concepts, tools and practices essential or under-
standing alternative investments and promotes adherence to high standards o proessional conduct.
Chicago Board Options ExchangeChicago Board Options Exchange, the largest U.S. options exchange and creator o listed op-
tions, continues to set the bar or options trading through product innovation, trading technol-
ogy and investor education. CBOE oers equity, index and ETF options, including the S&P 500
and CBOE Volatility Indexes (VIX). CBOEs Hybrid Trading System incorporates electronic and
open-outcry trading, enabling customers to choose their trading method. CBOEdirect, a propri-
etary, state-o-the-art electronic plat orm, powers CBOEs Hybrid, the CBOE Futures Exchange,
CBOE Stock Exchange and OneChicago. CBOE is home to the world-renowned Options Institute
and www.cboe.com, named Best o the Web or options inormation and education.
DirexionDirexion Funds/Direxion Shares, managed by Raerty Asset Management LLC, is a major provider
o leveraged index unds and ETFs and alternative-class und products or investment advisors and
sophisticated investors who seek to eectively manage risk and return in both bull and bear markets.
Founded in 1997, the company has approximately $6.3 billion in assets under management. The
companys business model is built on continuous product innovation, exceptional customer service
and a commitment to building strategic relationships with distribution partners. For more inorma-
tion, please visit www.direxionunds.com.
DundeeWealth US LPDundeeWealth U.S. oers a broad range o investment strategies to institutional investors and wealth
management rms. We are a division o DundeeWealth Inc., one o Canadas largest and astest
growing investment rms, managing more than $37 billion in client assets. Our platorm includes
more than 50 investment strategies that range rom U.S., global and international equities to more
specialized alternative investment strategies including gold and precious metals, natural resources,
energy income trusts and Canadian equities. Investment oerings are available through separately-
managed accounts, mutual unds, and commingled vehicles.
Eaton VanceEaton Vance is one o the oldest investment management rms in the United States, with a history
dating back to 1924. Eaton Vance and its aliates oer individuals and institutions a broad array
o investment products and wealth management solutions. The Companys long record o provid-
ing exemplary service and attractive returns through a variety o market conditions has madeEaton Vance the investment manager o choice or many o todays most discerning investors.
Federated Investors Inc.Federated Investors has played a pioneering role in the nancial industry since 1955. As one o the
nations largest investment managers, Federated oers style-consistent investment products including
domestic and international equity, xed-income and money market mutual unds as well as a variety
o separately managed account options. Our diversied product line is distributed through a network
o nancial intermediaries and institutions who assist investors in meeting their unique objectives.
Federated understands the importance o diversication and allocation in reducing overall portolio
volatility. We continue to develop competitive and innovative products and create new applications or
existing products to meet investors evolving nancial needs.
TM
8/9/2019 Innovative Alternative Strategies
25/29
july 2010 | innovative alternative strategies | 81
FoliofnFolio Institutional is a division o FOLIOfn Investments, Inc., a sel-clearing broker-dealer and a
direct member o The Depository Trust & Clearing Corporation (DTCC) since 2001. With access
to innovative, patented online brokerage and investing solutions, advisors can maintain diversied
portolios o securities, retain hands-on control over investments, manage tax liabilities, eciently
rebalance portolios, produce reports, promote compliance, and take many other actions or the
clients benet. Folio Institutional provides custody and brokerage services or billions o dollars o
investor assets, and services to hundreds o registered investment advisors.
Fortigent LLCFortigent LLC delivers a ully integrated and customizable business-to-business outsourced wealth
management solution to banks, trust companies, and independent advisory rms. Services include
a comprehensive investment platorm with particular expertise in alternative investments, a fexible
unied managed account program, and consolidated wealth reporting. Fortigents web-based portal
interace allows access to proposal and rebalancing tools, client portolio reporting and accounting,
as well as industry articles, research papers, and other practice management and business develop-
ment resources. For more inormation, visit www.ortigent.com .
Fund Evaluation GroupFund Evaluation Group LLC (FEG) was ounded in 1988 with the goal o assisting organizations in
selecting exceptional investment managers and developing prudent investment programs. Total
client assets under advisement are over $27 billion (as o 9/30/09). Primary services include invest-
ment consulting and research, hedge und management and out-sourced discretionary portolio
management. Clients include institutional investors and nancial proessionals. FEG is a 100%
employee-owned rm and our revenues are derived solely rom our clients, both o which ensure
that FEG remains an objective investment advisor.
Grubb & Ellis Securities Inc.Grubb & Ellis Company is one o the worlds largest and most respected commercial real estate
services and investment management companies. The company is a leading sponsor o real estate
investment programs that provide individuals and institutions the opportunity to invest in a broad
range o real estate investment vehicles, including tax-deerred 1031 tenant-in-common (TIC)
exchanges, public non-traded real estate investment trusts (REITs) and real estate investment unds.
Grubb & Ellis sponsors Grubb & Ellis Apartment REIT, Inc. and Grubb & Ellis Healthcare REIT II, Inc.
For more inormation regarding Grubb & Ellis, please visit equityadvisors.grubb-ellis.com.Hatteras FundsHatteras Funds strives to be a leading provider o unique alternative investment solutions or nan-
cial proessionals. Founded in 2003, Hatteras oers investors the ability to access institutional-quality
alternative investments with condence. Hatteras believes all investors should benet rom the samesophisticated investment approach and portolio management talent as the largest institutions. We
reduce barriers that many investors ace when considering an allocation to alternative investments.
Hatteras oers a suite o alternative investment products designed to oer access to: hedge und
strategies with daily liquidity, hedge unds with 1099 tax reporting, hedge unds and private invest-
ments in one core allocation, global private equity, and venture capital.
Sponsors&Exhibitors
8/9/2019 Innovative Alternative Strategies
26/29
82 | innovative alternative strategies | july 2010 www.altinvconference.com
Incapital LLCIncapital is a leading underwriter & wholesale distributor o xed income securities & structured
notes through a network o more than 900 broker-dealers, advisory rms, banks & institutions. With
a diverse range o new issue and secondary market oerings, Incapital specializes in U.S. Agency
securities, corporate notes, CDs, CMOs, municipal bonds, and structured notes. Incapital also pro-
vides resources or nancial advisors and investors to create income-producing portolios and notes
linked to a wide range o asset classes.
Invesco PowerSharesInvesco PowerShares Capital Management LLC is Leading the Intelligent ETF Revolution through its
amily o more than 110 domestic and international exchange-traded unds, which seek to outper-
orm traditional benchmark indexes while providing advisors and investors access to an innovative
array o ocused investment opportunities. With ranchise assets over $43 billion as o Dec. 31, 2009,
PowerShares ETFs trade on both U.S. stock exchanges. For more inormation, please visit us at
www.invescopowershares.com.
Lindner Capital Advisors Inc.Lindner Capital Advisors is a ederally registered investment advisor that was ormed in 1996 to
provide asset management services through an exclusive group o nancial proessionals and select
broker/dealers. LCA applies an academically sound strategy to portolio construction utilizing the
Nobel-prize winning principles o Modern Portolio Theory, asset allocation and institutional invest-
ing. Our traditional retirement, tax managed and 401(k) portolios are specically designed to meet
each clients investment, risk tolerance and time horizon goals. LCA is registered with CEFEX, an
independent global assessment and certication organization that determines whether the Adviser
conorms to Fiduciary Best Practices in the conduct o its business.
Mickelson Investment Management LLCMickelson Investment Management LLC is a division o Mickelson Capital Consulting LLC; a licensed
RIA rm with more than 17 solid years o experience creating and preserving wealth or our clients. Our
ocus is to provide solutions that are both uncorrelated to traditional markets and have strong return
potential. Our extensive in-house resources include teams o experienced proessionals who represent
Private Investment in Public Equity and sophisticated approaches to lie settlement investing and
monetizing insurance linked assets. Our client-centric ethic infuences how we manage our portolios,
resulting in an emphasis on transparency, investor advocacy, and risk management.
Millennium Trust Company LLCMillennium Trust Company is an industry leader in administrative and custodial services. Mil-
lennium custodies alternative and traditional assets in IRAs, Solo 401(k)s and custody accounts,
oers cost-eective 403(b) solutions , creates customized Automatic Rollover programs, provides
integrated Health Savings Account solutions and designs unique trading platorms or InvestmentAdvisors. Millennium Trust custodies more than 80,000 accounts. For more inormation, please
visit www.mtrustcompany.com.
Multi-Bank Securities Inc.Multi-Bank Securities Inc. (MBS) is an institutional xed-income securities broker-dealer commit-
ted to earning and preserving the respect o our customers by meeting their investment goals with
personal service, institutional investment expertise and progressive technologies. As an independent,
privately-held organization, you can be assured we provide broad market visibility and put your
interests rst. MBS oers a ull array o xed-income products in addition to being both a broker and
underwriter o insured certicates o deposit.
Mickelson Investment Management
8/9/2019 Innovative Alternative Strategies
27/29
july 2010 | innovative alternative strategies | 83
Options Industry CouncilOIC is an industry cooperative unded by the BATS Options, Boston Options Exchange, Chicago
Board Options Exchange, International Securities Exchange, NASDAQ OMX PHLX, NASDAQ Op-
tions Market, NYSE Amex Options, NYSE Arca Options, and The Options Clearing Corporation. OIC
was ormed in 1992 to educate investors and their nancial advisors about the benets and risks o
exchange-traded equity options. OICs resources include: The Options Industry Services Help Desk at
1-888-OPTIONS, educational Web sites at www.OptionsEducation.org, www.OptionsEducation.org/
advisor and www.OICoptions.com, evening seminars throughout the continental United States and
Canada, instructional DVDs and educational literature and sotware.
Pensco Trust CompanyPENSCO Trust Company is a leading custodian and administrator or sel-directed retirement ac-
counts. We specialize in providing services to investors and institutional clients such as RIAs whose
investors are interested in diversiying their portolios to include alternative investments such as
real estate and private equity. For more than twenty years, we have made it our mission to enable
Americans to maximize their retirement savings by inorming them o the true range o allowable
investment options. We strive to be the premier provider in our industry as measured by integrity,
service, and knowledge o alternative investing within retirement accounts.
ProFunds GroupProShares is part o ProFunds Group, the leader in leveraged and inverse unds. ProShares introduced
the rst leveraged and inverse ETFs in the U.S. in 2006. Since 1997, ProFunds mutual unds have
provided investors with access to sophisticated investment strategies.
Ridgewood Energy CorporationThe Ridgewood Energy Funds partner with leading oil companies to drill and develop oil and
natural gas projects in the U.S. waters o the Gul o Mexico. In our 27 year history, Ridgewood
has raised over $2.6 billion rom aluent investors, 80% o which has come rom repeat inves-
tors. The Ridgewood Energy Funds provide the opportunity or accredited investors to receive
monthly cash low rom the sale o any oil and gas that is produced; portolio diversiication
through energy commodities historically low correlation to the equities markets; and tax ben-
eits rom intangible drilling costs, depletion, and depreciation.
RS InvestmentsAt the core o our business are multiple world-class investment management and research teams,
each operating autonomously and oering our clients their unique perspectives. Our specialized
investment teams deliver research-driven value, core, and growth strategies as well as sub-advised
international and xed-income strategies. Staed with experienced proessionals, each team employs
distinct and well-dened investment processes. The dedicated research team approach assures that
our clients benet rom process consistency, investment excellence, and choice across disciplines.Founded in 1986, RS Investments manages separate accounts and mutual unds or individuals and
institutions. Oces are located in San Francisco and New York.
State Street Global AdvisorsState Street Global Advisors is an acknowledged leader in the arena o institutional investing with
$1.9 trillion in assets under management.1 An innovator in the exchange traded und market and
creator o the rst ETF in 1993, we currently manage 89 domestic and 25 international exchange
traded unds with approximately $204 billion worldwide in our SPDR ETF amily.2 Products oered
through State Street Global Markets LLC, member FINRA, SIPC. For urther inormation, including
prospectuses, visit spdrs.com or www.spdrgoldshares.com.1As of December 31, 2009 2As of December 31, 2009
Sponsors&Exhibitors
8/9/2019 Innovative Alternative Strategies
28/29
84 | innovative alternative strategies | july 2010 www.altinvconference.com
Steben & Co.For over 20 years, Steben & Company Inc. has specialized in bringing managed utures to sophisticated
investors. An industry leader, Steben uses its experience to help investors and their nancial advisors
understand managed utures and the potential benets to be gained rom adding them to an invest-
ment plan. Steben & Company Inc. is registered with the Commodity Futures Trading Commission
(CFTC) as a commodity pool operator and introducing broker, the Securities and Exchange Commis-
sion (SEC) as a broker dealer and investment advisor, and is a member o the National Futures
Association (NFA) and Financial Industry Regulatory Authority (FINRA).
Sterling TrustSterling Trust, a division o Equity Trust Company, is at the oreront o the sel-directed retire-
ment plan industry specializing in the custody o sel-directed IRAs , qualied business retirement
plans and non-qualied custodial accounts invested in alternative investments. Since 1974, we have
worked closely with nancial advisors and planners, broker-dealers, tax and legal proessionals,
investment product sponsors, mutual und companies, banks and other nancial institutions to help
your clients achieve greater portolio diversication. Today, Sterling Trust and its aliates provide
services to more than 140,000 individuals and businesses nationwide with approximately $10 billion
in assets under custodial and retirement administration.
TD AmeritradeTD AMERITRADE Institutional is a leading provider o comprehensive brokerage and custody services
to over 4,000 independent Registered Investment Advisors (RIAs) and their clients. We deliver smart
operational solutions, innovative technology, customized practice management and fexible invest-
ment solutions, all with one goal in mindimpeccable service. As steadast advocates or independent
advisors, we continually speak out to ensure that RIA needs and the needs o investors are always con-
sidered within the regulatory environment. When you choose to work with us, youll see how deeply
we are committed to your success. Visit us at www.tdainstitutional.com or call us at 800-934-6124.
Walton International Group Inc.Walton is a premier land acquisition, planning, development and management company in the
United States and Canada with approximately 58,000 acres* managed, syndicated, exited, or under
contract. Walton employs leading industry experts to ensure quality asset acquisition and manage-
ment along every step o the land investment process and makes a long-term commitment to the
communities in which it operates in order to create sustainable and livable environments. Walton is
well positioned to execute its all-cash business model in the current economic environment with a
ocus on path o growth investments in strategic Sun Belt sub-markets.
*Approximate as of 2/10/10.
WisdomTree Asset Management Inc.
WisdomTree is an exchange-traded und (ETF) sponsor and asset manager using its own undamen-tally weighted index methodology. WisdomTrees ETF line-up consists o 34 undamentally weighted
equity unds and 8 currency unds. WisdomTree also licenses its indexes to third parties or proprietary
products and oers a platorm to promote the use o WisdomTree ETFs in 401(k) plans. Approximately
$7.4 billion in assets currently are managed by WisdomTree or are managed against WisdomTree
Indexes by third parties under license rom WisdomTree. For more inormation, please visit
www.wisdomtree.com
Member FINRA/SIPC
Sponsors&Exhibitors
8/9/2019 Innovative Alternative Strategies
29/29
the westin chicago river north
The Westin Chicago River North allows guests a chance
to experience relaxation and renewal while maintaining
access to all o their avorite city activities. In the heart o
Chicagos theater and fnancial district, the hotel provides
guests with easy access to entertainment as well as a
stunning view o the Chicago River. It also is down the road
rom the citys best shopping on Michigan Avenue.
18 miles from Chicago OHare International Airport
12 miles from Chicago Midway International Airport
All guest rooms come with high-speed internet access
Room Block Rate: $179/night (plus applicable taxes) Expires: July 9, 2010Please visitwww.altinvconference.com to reserve your room or call 312.744.1900
and mention the Innovative Alternative Strategies Conference.
sponsor and exhibit opportunities
Showcase your company to an exclusive audience o fnancial and wealth advisors, RIAs, Family Ofce
Principals and other attendees who are specifcally interested in Innovative Alternative Strategies.
Please contact David Smith at 732.450.8866, ext. 26 or dsmith@pw-mag.com
Conference Admission
Continuing Education (CE) Credits
Pre-Conference Multi-Family Off ice Workshop July 26, 2010 Rate $149
Financial Advisor Rate: $249 (subject to approval) | Service Provider Rate: $1,495
This program is pending approval by the CFP Board and IMCA.
Discounted conference and pre-conference package available
Cancellations: If you are unable to attend, you may send a substitute delegate at no extra charge. Should you completely cancel, a $200 administration fee will be charged and we must receive a notice
of your cancellation in writing by June 27, 2010. No cancellation refunds/requests will be accepted after June 27, 2010. In the event of the conference being cancelled, Financial Advisor andPrivate Wealth
magazines assume no liability for nonrefundable transportation costs, hotel accommodations or any additional cost incurred by registrants.
who should attend
Financial Advisors RIAs Independent and Wirehouse Reps Private BankersEstate Planners Wealth Advisors Trust Ofcers Family Ofces
Insurance/Risk Managers Accountants Attorneys Other Centers of Inuence
Recommended