Quote:
Originally Posted by bizaro86
Personally I think Aimco is brutal not because of their returns but because of the risk they've been taking. Their 2020 annual report said that every asset class was down and there was nothing they could do, but volatility was up, and they shorted it. Selling market-crash insurance is hugely risky and not something they should have done.
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Yeah, but that’s one year. Aren’t they returning something like 6-7% annually over the past decade (I confess I didn’t look at the numbers here)? That’s a pretty good return, really. The issue is that everyone wants to compare that to what we could get in an all equity mandate (which is more appropriate for younger, accumulating investors and not so much for a pension fund) and say “we can do better”. I just think that isn’t a great argument.
I also think that while the CPPiB return has been better, they have a lot of alts in their mandate that Aimco just doesn’t have. And to build out the staff and infrastructure to get a comparable portfolio is expensive.