Ritholtz Wealth Management's Ben Carlson - bringing a wealth of common sense to asset allocation

Welcome back to the Alt Goes Mainstream podcast.

Today’s show features a guest who brings a wealth of common sense to wealth management and asset allocation.

We talk with Ben Carlson, the Director of Institutional Asset Management at Ritholtz Wealth Management, a $5B AUM wealth management firm. He’s managed institutional portfolios for his entire career. He started out with an institutional investment consulting firm, where he deployed portfolio strategies and created investment plans for foundations, endowments, pensions, hospitals, insurance companies, and HNW individuals. More recently, he was part of the portfolio management team for an investment office that managed a large endowment fund for a charitable organization.

Ben is a student of markets and asset allocation, which is clear from the knowledge he shares daily and weekly with his blog, A Wealth of Common Sense, and his podcast Animal Spirits with Michael Batnick and Ben Carlson. He’s also authored four books about saving, investing, and money. He was named to the Investment News 40 Under 40 list of top financial advisors in 2017.

Ben and I had a fascinating conversation about the adoption of alternatives in the wealth channel and the whys and hows of asset allocation. We discussed:
  • Why asset allocation is the most important aspect of an investment plan.
  • The question of whether or not investors now have too much choice?
  • Why Ben documents every investment decision he makes.
  • The benefits of private markets and the pitfalls of private markets.
  • His biggest lesson learned in investing.
  • Why crypto has helped younger investors become more comfortable with volatility (for better or worse).
  • The future of wealth management and what won’t change about the advisor / client relationship.
  • The power of content creation and how it helps him approach investing.
Thanks Ben for coming on the show to share your wisdom and experience in investing and asset allocation. We hope you enjoy.

A word from AGM podcast sponsor, Ultimus Fund Solutions

This episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions, a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency.

To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products.

Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at gharris@ultimusfundsolutions.com.

We thank Ultimus for their support of alts going mainstream.

Show Notes
00:00 Sponsor: Introduction to Ultimus Fund Solutions
01:56 Meet Ben Carlson: Wealth Management Expert
02:17 Ben Carlson's Career Journey
02:55 Insights on Asset Allocation
03:11 The Importance of Documenting Investment Decisions
03:14 Private Markets: Benefits and Pitfalls
04:34 Early Career Lessons
04:58 Asset Allocation Strategies
06:06 Navigating Investment Choices
07:10 The Complexity of Investment Strategies
09:46 Institutional vs. Wealth Management
10:19 Communication in Institutional Investing
12:35 The 60/40 Portfolio Debate
23:20 Advisors and Alternatives
27:17 Thresholds for Investing
27:48 Differentiating Through Culture
28:41 Defining and Evaluating Culture
29:20 Transparency and Client Relationships
29:57 Partnering with the Right Clients
30:19 Qualitative Manager Selection
31:53 Content Creation and Transparency
34:22 Building a Brand from Scratch
37:49 Advice for Young Advisors
39:31 Compounding in Private Markets
40:06 Behavioral Benefits of Private Markets
41:17 Excitement in Private Markets
41:56 Evolving Fund Structures
42:28 Defining Alternatives
43:48 Younger Investors and Volatility
46:55 Future of Wealth Management
47:53 Private Equity in Wealth Management
48:58 Favorite Alternative Investments
51:44 Conclusion and Final Thoughts
2021