October 14, 2016
Panelists (L-R) David Kazansky, Jeff Tittel, Jeffrey Arricale, and JJ Jelincic discuss alternative managers
Panelists (L-R) David Kazansky, Jeff Tittel, Jeffrey Arricale, and JJ Jelincic discuss alternative managers

On September 29, UNITE HERE hosted a panel discussion at the 2016 Fall Conference of the Council of Institutional Investors highlighting the risks of alternative asset managers for institutional investors. Entitled “Bigger Isn’t Always Better,” the meeting focused on Ares Management as a case study in alternative manager risk.

Panelists included:

  • JJ Jelincic, an elected member of the CalPERS Board of Administration
  • Jeffrey Arricale, an equity research analyst specializing in financial services firms
  • David Kazansky, a teacher member of the New York City Teachers’ Retirement System
  • Jeff Tittel, Director of the New Jersey Chapter of the Sierra Club

The panel discussed how Ares’ management fees have exceeded fees based on performance, its move into energy assets that may have raised its exposure to headline risk, and its publicly traded business development corporation that had yielded outsize fees for the manager, and that stands to grow by lobbying for more lax financial regulations.

Panelists and audience participants represented funds or firms with over $700 billion in assets under management.

UNITE HERE invited an Ares representative to participate in the discussion, but received no reply from the firm.

For more information on the panel, or to participate in future UNITE HERE discussions, please contact panel moderator Elliott Mallen at [email protected]

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