Scott Chan

That's a great question. It's two sides of the same coin here. One thing that we've talked about is we just have a very long-term horizon. You're labeling me as contrarian. I think thinking long-term gives you the capability to be contrarian. because most of what you're seeing in the short term is noise. So that's number one.

That's a great question. It's two sides of the same coin here. One thing that we've talked about is we just have a very long-term horizon. You're labeling me as contrarian. I think thinking long-term gives you the capability to be contrarian. because most of what you're seeing in the short term is noise. So that's number one.

That's a great question. It's two sides of the same coin here. One thing that we've talked about is we just have a very long-term horizon. You're labeling me as contrarian. I think thinking long-term gives you the capability to be contrarian. because most of what you're seeing in the short term is noise. So that's number one.

Number two, the way you make money with a high degree of probability is bottom up, transaction by transaction, deal by deal. And so our sites gives us the capability to build an expertise, expert team across markets, which is not typical for an organization of our size, is create a nimble and dynamic decision-making structure at the division level. That's something that's unique.

Number two, the way you make money with a high degree of probability is bottom up, transaction by transaction, deal by deal. And so our sites gives us the capability to build an expertise, expert team across markets, which is not typical for an organization of our size, is create a nimble and dynamic decision-making structure at the division level. That's something that's unique.

Number two, the way you make money with a high degree of probability is bottom up, transaction by transaction, deal by deal. And so our sites gives us the capability to build an expertise, expert team across markets, which is not typical for an organization of our size, is create a nimble and dynamic decision-making structure at the division level. That's something that's unique.

The second thing is scale economics. Some of the transactions we can negotiate from a collaborative model perspective is the scale. If we're going to be a significant size, it just aids us being able to negotiate better win-wins with our partners.

The second thing is scale economics. Some of the transactions we can negotiate from a collaborative model perspective is the scale. If we're going to be a significant size, it just aids us being able to negotiate better win-wins with our partners.

The second thing is scale economics. Some of the transactions we can negotiate from a collaborative model perspective is the scale. If we're going to be a significant size, it just aids us being able to negotiate better win-wins with our partners.

Thank you. No, thanks for having me. This is really exciting. And you've done a great job with your podcast. I'm so excited to be here, David.

Thank you. No, thanks for having me. This is really exciting. And you've done a great job with your podcast. I'm so excited to be here, David.

Thank you. No, thanks for having me. This is really exciting. And you've done a great job with your podcast. I'm so excited to be here, David.

Let me just talk about the CalSTRS collaborative model, which is our primary way of how we implement our investment strategy. So if I were just to step back and define what is the collaborative model for your audience, for CalSTRS, that's an investment strategy to bring more of our assets in-house to lower costs, increase alpha, or control our risk better.

Let me just talk about the CalSTRS collaborative model, which is our primary way of how we implement our investment strategy. So if I were just to step back and define what is the collaborative model for your audience, for CalSTRS, that's an investment strategy to bring more of our assets in-house to lower costs, increase alpha, or control our risk better.

Let me just talk about the CalSTRS collaborative model, which is our primary way of how we implement our investment strategy. So if I were just to step back and define what is the collaborative model for your audience, for CalSTRS, that's an investment strategy to bring more of our assets in-house to lower costs, increase alpha, or control our risk better.

or to leverage our partners in the private markets to achieve similar benefits. You think about public markets versus private markets here at CalSTRS. In the public markets, for example, in global equities and fixed income, we have roughly 80% to 85% of our assets managed by our own internal team from trading to portfolio management and anything in between.

or to leverage our partners in the private markets to achieve similar benefits. You think about public markets versus private markets here at CalSTRS. In the public markets, for example, in global equities and fixed income, we have roughly 80% to 85% of our assets managed by our own internal team from trading to portfolio management and anything in between.

or to leverage our partners in the private markets to achieve similar benefits. You think about public markets versus private markets here at CalSTRS. In the public markets, for example, in global equities and fixed income, we have roughly 80% to 85% of our assets managed by our own internal team from trading to portfolio management and anything in between.

And these areas have consistently beat the markets. We take a little bit of active risk, sort of enhanced active is what we call it. And some fixed income, call it 30 basis points a year, we generate an alpha. In global equity, that's become more significant. It's around 50 basis points a year or so.

And these areas have consistently beat the markets. We take a little bit of active risk, sort of enhanced active is what we call it. And some fixed income, call it 30 basis points a year, we generate an alpha. In global equity, that's become more significant. It's around 50 basis points a year or so.