While no investor wants to see a blowup in their portfolio, not all meltdowns are created equally.
Institutional investors, the so-called smart money, have to decide whether the manager made a bad investment or a bad decision.
“What I say is most important is that we know that the managers that we’re hiring are staying true to what we hired them for,” said El-Hillow, the chief investment officer of $418 billion Russell Investments, which, in addition to running its own funds, invests in other managers.
It’s her job, she said, to understand the exposures, leverage, and risks from any individual investment and protect against that in the broader portfolio. In other words, deciding which funds in the red deserve patience and which have lost the firm’s trust.
El-Hillow spoke to Business Insider on Thursday morning, as Leopold Aschenbrenner’s…
