2006 Fall Forum for Private Investors Location: The St. Regis Hotel, New York
Circle= Novice
Square= Intermediate
Diamond= Highly Technical

Next to some of the breakout sessions is a symbol to show level of difficulty or sophistication assumed by the speaker. Imitating the skier's world, we use a circle to indicate novice, square for intermediate and diamond or double diamond to warn you that the content is highly technical.


IVSN Ivory Snow Members Only

An ivory snow member is defined as a private investor who has no business interest in gaining other private investors as clients. Name tags reflect the ivory snow status, and certain sessions are open only to ivory snow members.

About IPI Events

The goal of the Institute for Private Investors is to provide innovative educational and networking resources to families with substantial assets and their advisors, and in so doing to change the way investors work with advisors and advisors work with investors, for the benefit of both.

Networking and establishing relationships are vital components of Institute events. However, maintaining a "safe harbor" complete with privacy and a non–commercial atmosphere is crucial. Members cherish this "safe harbor" atmosphere, and thus no attendee list or membership directory is published nor are names or other information about members released to anyone.

We ask all members, guests, and speakers to respect this non–commercial tradition and refrain from giving even informal investment presentations or making solicitations of any kind. Exchanging business cards is entirely appropriate.

Certain sessions are clearly noted as presentations of investment products or services, also known as The Grill®, but members who choose to attend these sessions are advised that the Institute has performed no due diligence and does not endorse any investment firm or product. Members are urged to perform their own extensive due diligence.

Membership dues and educational fees from advisors and individual members are the sole revenue source of the Institute. The Institute does not endorse any investment services, strategies or managers.


Tuesday, October 3rd, 2006

Newer Member Dinner
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IVSN Newer Member Dinner
Join fellow newer members for an intimate dinner with IPI Advisory Faculty and a Leaders Council member firm acting as host.


Wednesday, October 4th, 2006

8:30am – 9:30am Choice of Five Breakout Sessions
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Square China & the U.S.: Twin Pillars of the World Economy
Speaker: Zachary Karabell, Ph.D. / Fred Alger Management, Inc.
The global economy in 2006 is powered by two engines: the United States and China. The U.S. economy remains the world’s largest by far, but China is the most significant source of change. The country has emerged as an economic powerhouse, with real GDP growth in excess of 9% a year with no sign of slowing anytime soon. China’s growth also has global implications, with a trade surplus in 2005 alone of $102 billion, reflecting China’s emergence as an increasingly dominant force, not just as a producer of goods for export, but as a consumer of both raw materials and finished products. The relationship between the U.S. and China is symbiotic, and while wages and labor have been challenged, the China factor has been positive for the U.S. economy and for many companies that have seen their profits in China soar. The question now is: How will the U.S. cope with this rising giant, and how will both nations forge the future of our global economy.
Square Human Capital and the Family Office: Compensation, Retention, and Satisfaction
Speaker: Linda C. Mack / Mack International, LLC
In this session we will explore trends and best practices around attracting and retaining key talent in the family office. We will discuss issues around compensation but more importantly will investigate the role of job satisfaction in the retention of family office professionals. This highly interactive discussion will use case studies to encourage participants to share their experiences, from both single and multi-family offices.
Double diamond Juicing It Up: Leverage Within Your Portfolio
Speaker: Timothy Kochis / Kochis Fitz
Use of investment leverage carries a hint of risky ... even risqu? ... behavior that most investors and many advisors consider inappropriate for well-managed portfolios. In this session the speaker takes the unconventional view that portfolio leverage, within proper parameters, is almost always the smart move for long-term investors. This presentation will critique the many inappropriate uses of leverage, but will also argue that it can be used effectively.
IVSN One Family’s Path to a Family Governance Solution
Speaker: IPI Private Investor
Many families recognize that defining a family governance process can enhance communication between generations, better prepare heirs for future responsibilities, and ensure that family businesses, wealth, and foundations will have the best chance to succeed into the future. But how does a family begin this process and what pitfalls should be avoided? In this session, a private investor member will share his story as to how his family defined a family governance solution and what lessons they learned along the way.
Square The Grill®: Can Families Invest Like Harvard and Yale?
Grillee: Gil M.Orbach / Spruce Private Investors, LLC
Griller: Daniel C. Tarlas CFA / Asset Consulting Group, Inc.
Both Harvard and Yale's endowment funds have received significant attention in the financial press for their outstanding long-term investment performance, consistency of returns and avoidance of large losses during market downturns. Can families replicate this enviable track record in their own portfolios? The Grill® is designed to simulate an actual due diligence interview and will be “commercial.” Ideas, opinions, and theories expressed during The Grill® are not to be interpreted as recommendations or investment advice of any kind by the Institute for Private Investors. IPI performs no due diligence on investments, products or firms and is not recommending the products presented. Members should perform their own extensive due diligence.


9:30am - 9:45am Coffee and Refreshment Break


9:45am – 10:45am Choice of Five Breakout Sessions
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Diamond A Scorecard on the Advisor: After Tax Alpha Star
Speaker: Paul Wold Bouchey, CFA / Parametric Portfolio Associates
For advisors that recommend a significant allocation to alternatives, the a* metric is a powerful and simple approach to evaluate overall portfolio performance. Originally proposed by Wharton Professor Richard Marston, it uses the capital market line as a benchmark to measure value added for the total portfolio. With this metric, a large allocation to alternatives appears to be optimal. But what happens when you consider taxes and fees in the analysis?
Square Gold: Prying Open the Treasure Chest
Speaker: Katharine Pulvermacher / World Gold Council
After wandering in the wilderness of a twenty-year bear market gold appears to have recovered its luster over recent years, and investors around the world have re-awoken to its charms. Are they simply under the spell of transient returns, or is this the beginning of a longer term shift? In this session, we will explore what led to this quiet revolution, discuss recent trends and propose a set of analytical tools to help understand the world of gold.
Diamond The Grill®: Asian Real Estate
Grillee: Keith F. Barket / Angelo, Gordon & Company, L.P.
Griller: IPI Advisory Faculty
Where are the best opportunities for investing in real estate in Asia? In this session, we will discuss different investment structures to invest in real estate with a focus on China and South Korea. The Grill® is designed to simulate an actual due diligence interview and will be “commercial.” Ideas, opinions, and theories expressed during The Grill® are not to be interpreted as recommendations or investment advice of any kind by the Institute for Private Investors. IPI performs no due diligence on investments, products or firms and is not recommending the products presented. Members should perform their own extensive due diligence.
Square Trends, Challenges and Opportunities in Data Aggregation Technology:
What Are Private Investors and Family Offices Currently Utilizing and What Are They Dreaming Of?
Speaker: David W. Bailey / Northern Trust
Sophisticated investment programs, technological developments and vendor options in the marketplace today make the task of tracking and reporting family assets more and more daunting. Families and family offices with multiple asset classes such as marketable securities, alternative investments and nontraditional holdings are challenged with how to aggregate their data accurately and efficiently. In this interactive session, we will discuss the current state of technology for aggregating all holdings into one complete financial statement (for individual family members as well as collectively as a family). We will also discuss new trends in data storage and security.
IVSN Trusteeship and Family: When Family Members Act as Trustees, What Can Go Wrong?
Speaker: IPI Private Investor
In this ivory snow session, an IPI private investor will share his experience as a family trustee and discuss the challenges that he faced when combining fiduciary responsibilities with the dynamics of a family. He will then discuss how his family resolved these complex issues. An interactive discussion around the interrelationship of trusteeship, governance, family dynamics and investment management will follow the presentation.


10:45am - 11:00am Coffee and Refreshment Break


11:00am - 12:00pm Rooftop Keynote Address
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Living in a Flat World: How International Alternatives Have Reshaped the Investment Landscape
Keynote Speaker: Mark W. Yusko / Morgan Creek Capital Management, LLC


12:00pm - 12:30pm Pre-luncheon Reception


12:30pm– 2:00pm Luncheon Keynote Address
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Globalization: Implications for Investors
Keynote speaker: Laurence D. Fink / BlackRock Financial Management Inc.


2:00pm - 2:15pm Coffee and Refreshment Break


2:15pm - 3:15pm Choice of Four Breakout Sessions and One Member Roundtable
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Double diamond How Neutral Are Market Neutral Strategies?
Speaker: Anoop Dhakad, CFA / Lehman Brothers
Many hedge funds claim to be market neutral, but do these market neutral strategies work as promised or is the promise a false one? What are the different market neutral strategies, and how do they vary from one another? What is the real impact of interest rate shocks, economic shifts, energy pricing jolts and geopolitical crises on these strategies? How can an investor evaluate such strategies?
Square Looking Under the Hood of Fee Structures with Alternatives
Speaker: David Bailin / U.S. Trust Company
In this session, we will explore trends in fees for alternative investments, with a focus on the relationship of fees relative to their expected returns. In asset classes that are seeing compression of returns, how are fee structures adapting to this new reality?
Diamond Strategic, Tactical and Opportunistic Allocations
Speakers: David L. Donabedian / Ashbridge Investment Management, LLC
Charles B. Grace, III / Ashbridge Investment Management, LLC
Strategic asset allocation remains the most critical determinant in achieving investment objectives, but the importance of tactical asset allocation and opportunistic investing is rising. Given the increasing pace of change in the global financial markets, an expansive view of tactical and opportunistic strategies can add significant risk-adjusted value to portfolio results. This session will focus on the advantages and challenges of deviating from strategic policy and discuss ways to track performance incorporating a tactical or opportunistic approach.
Square The Grill®: India – Opportunities in the Mid-Market
Grillees: Ashok Roy / Sycamore Ventures
Ravi Singh / Sycamore Ventures
John R. Whitman / Sycamore Ventures
Griller: IPI Advisory Faculty
More than a billion people live in India and its economy is one of the fastest growing in the world. India’s mid-market, its more than 5,000 small and mid-size companies, form the underpinnings of the economy. How do you tap into this massive economic growth? What do the capital markets look like? What are the pitfalls? The Grill® is designed to simulate an actual due diligence interview and will be “commercial.” Ideas, opinions, and theories expressed during The Grill® are not to be interpreted as recommendations or investment advice of any kind by the Institute for Private Investors. IPI performs no due diligence on investments, products or firms and is not recommending the products presented. Members should perform their own extensive due diligence.
IVSN Member Roundtable on Investing in Real Estate
Facilitator: Henry J.H. Bandet / HG Capital, LLC, IPI Advisory Faculty
Member Roundtables are an opportunity for private investors to share investing experience and information with their peers. Members are required to complete a brief survey in advance of the session and the data will be aggregated (without attribution). The survey results will help the facilitator guide the session.


3:15pm - 3:30pm Coffee and Refreshment Break


3:30pm - 5:00pm Choice of Three Breakout Sessions and Three Member Roundtables
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IVSN Family Legacy or Family Feud: Does the Family Who Invests Together Stay Together?
Speaker: Charles A. Lowenhaupt / Lowenhaupt Global Advisors
Conventional wisdom suggests that family assets must be bundled together in order to preserve the family legacy. Is this always the best approach? Does the wealth need to be “co-invested” and managed from a shared pool? Is the preservation of wealth sacrosanct or are there other, more important goals that need to be considered? Oftentimes, the needs of individual family members for autonomy may require that the assets be "unbundled." In this interactive discussion we will explore the successes and failures of families who have invested jointly and separately, and consider how these issues relate to the larger question, “What is the wealth for?”
Double diamond Redefining Asset Classes: Where Do Alternatives Really Belong?
Speakers: Ridgway H. Powell, CFA / Mellon Financial Corporation
Christopher Sheldon / Mellon Financial Corporation
How should families rethink asset allocation with the increased use of alternative assets in their portfolios? What are the risks and potential management issues around liquidity, correlations, volatility, and transparency of alternative investments and how should a savvy investor take this into account in their asset allocation framework? How should the convergence of asset classes (i.e. private equity to hedge funds / hedge funds to private equity) impact investors’ thinking about their own allocation decisions?
Square The Grill®: Why You Can’t Ignore European Private Equity
Grillee: David Seligman / Edmond de Rothschild Private Equity Select, LLP
Griller: IPI Advisory Faculty
Despite the growth in both funds raised and amounts invested in private equity, the European market is still considerably less mature and competitive than the U.S., and may offers superior returns. Dealflow is expected to remain highly active; with the continuing impact of the single market and Euro, as well as restructuring, as companies continue to reduce costs to remain competitive. The mid-market segment has out-performed other segments historically, and this is expected to continue with the increasing proportion of total money being raised by the mega-funds. The Grill® is designed to simulate an actual due diligence interview and will be “commercial.” Ideas, opinions, and theories expressed during The Grill® are not to be interpreted as recommendations or investment advice of any kind by the Institute for Private Investors. IPI performs no due diligence on investments, products or firms and is not recommending the products presented. Members should perform their own extensive due diligence.
IVSN Member Roundtable on Family Office Structures / Procedures
Facilitator: IPI Private Investor
Member Roundtables are an opportunity for private investors to share investing experience and information with their peers. Members are required to complete a brief survey in advance of the session and the data will be aggregated (without attribution). The survey results will help the facilitator guide the session.
IVSN Member Roundtable on Global Hedge Funds
Facilitator: IPI Private Investor
Member Roundtables are an opportunity for private investors to share investing experience and information with their peers. Members are required to complete a brief survey in advance of the session and the data will be aggregated (without attribution). The survey results will help the facilitator guide the session.
IVSN Member Roundtable on Private Equity: Is Bigger Better?
Facilitator: IPI Private Investor
Member Roundtables are an opportunity for private investors to share investing experience and information with their peers. Members are required to complete a brief survey in advance of the session and the data will be aggregated (without attribution). The survey results will help the facilitator guide the session.


5:30pm - 6:30pm
Reception
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US Trust
Hosted by U. S. Trust Company at The Townhouse


6:30pm
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Dinners hosted by Leaders Council


Thursday, October 5th, 2006


8:30am – 9:30am Request For Connection
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IVSN Request For Connection is a chance to meet members with whom you have interests in common in an informal and unfacilitated way. Sign up to meet other members around one of the following interests:
  • Members who do not have a family office
  • Family Office Executives who wish to discuss family office-specific issues
  • Members wishing to discuss family governance, spousal involvement or parenting concerns
  • Members wishing to discuss challenges / issues surrounding their own philanthropy


9:30am – 9:45am Coffee and Refreshment Break


9:45am – 10:45am Choice of Five Breakout Sessions
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Double diamond Cheaper Beta Through Managed Futures?
Speaker: Marc H. Malek / Conquest Capital Group
Studies have shown that adding Commodity Trading Advisor (CTA) exposure to a traditional or alternative portfolio enables achievement of higher returns without assumption of additional risk. However, some investors have hesitated to add managed futures to their portfolio because of concerns about CTAs such as lack of transparency, complexity or curve-fitting. In this session, we will discuss both the alpha and beta components of CTAs, in addition to correlation issues of managed futures with the broader market.
Diamond Do Stocks Really Outperform Bonds for the High Tax Bracket Investor?
Speaker: Niall J. Gannon / The Gannon Group at Smith Barney
The notion that stocks outperform bonds over the long run is a widely accepted principle of basic investing. However, does this advice apply to the wealthy family who pays taxes on investment income and capital gains at the highest rates? The conclusions reached in this discussion may cause investors to re-examine their asset allocation, investment policy and return expectations.
Diamond Pricing, Valuations and Other Challenges for Performance Analytics
Speaker: Al Munro / Integrated Wealth Services – A Rockefeller Company
Performance reporting can be difficult to calculate and even more difficult to interpret. Knowing where the numbers come from has become just as important as understanding what they mean. With investors' portfolios becoming more diverse and reporting requirements more strict, striking the NAV for your trust, fund or partnership has become increasingly more challenging. In this session we will explore the challenges behind valuations, pricing and reporting, particularly with alternative investments.
Square The Grill®: Investing in Asia - Public and Private Markets
Grillees: John R. Hass / Brown Brothers Harriman & Co.
John M.B. O’Connor / J.H. Whitney Investment Management, LLC
Griller: IPI Advisory Faculty
The economies of Emerging Asia have experienced extraordinary growth and are poised to outpace those of North America and Western Europe over the next ten years. Consequently many investment advisors are recommending an increased allocation to Asian equities, which have performed well over the past three years. As share prices have recently stabilized or declined and as volatility rises, investors are asking: Is this sound advice? Where are the best opportunities to invest in Asia? What are the most effective methods of investing? What are the risks? The Grill® is designed to simulate an actual due diligence interview and will be “commercial.” Ideas, opinions, and theories expressed during The Grill® are not to be interpreted as recommendations or investment advice of any kind by the Institute for Private Investors. IPI performs no due diligence on investments, products or firms and is not recommending the products presented. Members should perform their own extensive due diligence.
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When and How Should the Next Generation Be Told?
Facilitators: Steve Barimo / Asset Management Advisors
Michael Zeuner / Asset Management Advisors
In this interactive session,attendees will be asked to evaluate possible ingredients to the “money talk” in order to build their own recipe for communicating between generations about wealth and inheritance. It will not presume to tell you that there is one ‘right’ way to tell children about family wealth or potential inheritances. Instead, it will ask you to evaluate a myriad of possibilities, select those that you think to be most applicable, and thoughtfully use them to develop a blueprint for families to follow. This session will be repeated at the Next Generation Retreat, and the results of both sessions will be compiled and shared. Similarities and differences will be highlighted along with excerpts from each of the discussions with the hope of providing the audiences with a glimpse into each generation’s thinking.



10:45am - 11:00am Coffee and Refreshment Break


11:00am - 12:00pm Rooftop Keynote Address
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The Age of Fallibility: The Consequences of the War on Terror
Keynote speaker: George Soros
Mr. Soros will discuss his new book, The Age of Fallibility: The Consequences of the War on Terror, as well as his thoughts on philanthropy,
human rights, and geopolitical events


12:00pm – 12:30pm Pre-luncheon Reception and Book Signing


12:30pm – 2:00pm Lunch Sessions – Choice of Four Breakout Sessions and RFC Sessions
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Square Estate Planning with a Portfolio of Alternatives
Speakers: John P. Garniewski, CPA / Wilmington Family Office, Inc.
Benjamin J. Ledyard, Esq. / Wilmington Family Office, Inc.
Over the last decade, many families have incorporated alternative and private equity investment strategies into their overall asset allocation and investment planning. This session will address many financial and estate planning issues inherent with these types of non-traditional investments, as well as provide insight to the many planning techniques available to families to maximize the leverage offered by these investments. The discussion will provide strategies for families with large concentrations of alternative investments to accomplish tax and estate planning objectives as well as strategic philanthropic goals. Just as importantly, the discussion will set forth the latest strategies of how to incorporate alternative investments to further enhance established estate and financial planning techniques.
Diamond The Truth Behind Secondary Private Equity
Speaker: Sebastian Junoy / Headway Capital Partners LLP
There is currently a bubble in some sectors of the secondary private equity market: too much money has been raised to solely chase fund positions. Competition has expanded beyond pure secondary players. Prices in some sectors have increased above their long-term equilibrium. Alternatives to secondary market such as securitization and exchange traded secondary funds, will not work in the near future. Some normalization of the market is expected in 12-24 months, and the adjustment might be painful. Constant analysis of the market is required to understand where the market is going, and what the next opportunities are; the secondary market still offers great opportunities in certain niche and inefficient sub-sectors, requiring in some cases the extension of the definition of secondary private equity.
Square Trends in Real Estate Valuations: Private vs. Public
Speakers: Dana Hobson / Bailard, Inc.
Ronald W. Kaiser / Bailard, Inc.
Pension and private equity funds have recently discovered that real estate is cheaper in some publicly-traded REITs than in the private market. They have begun to satisfy their considerable appetite for more real estate exposure by buying out many public REITs and taking them private, retiring a significant fraction of the public market in the process. This has rattled the public REIT world and led seasoned private real estate professionals to wonder if current valuations are sustainable. We will put these developments in a historical context and discuss the implications for private and public real estate valuation.
Square Unconventional Thinking: Perspectives from a Successful Hunter in the Global Marketplace
Speaker: Rudolph-Riad Younes, CFA / Julius Baer Investment Management
Investors searching for returns in today’s global markets face an increasing number of challenges as the world’s investment universe grows more complex and interconnected. Rudolph-Riad Younes will share his unconventional thinking and approach to finding and capitalizing on opportunities while avoiding the pitfalls that can arise in the decision-making process. This session will provide an overview of the global equity markets including the current climate of structural imbalances that are pressing on historic limits. It will also review strategies on how to reap the rewards the market has to offer.
IVSN Request For Connection
In lieu of a speaker-led lunch session, RFC is a chance to dine with members with whom you have interests in common in an informal and unfacilitated way. Sign up to meet other members around one of the following interests:
  • Members who do not have a family office
  • Family Office Executives who wish to discuss family office-specific issues
  • Members wishing to discuss family governance, spousal involvement or parenting concerns
  • Members wishing to discuss challenges / issues surrounding their own philanthropy


2:00pm - 2:15pm Coffee and Refreshment Break


2:15pm - 3:15pm Choice of Three Breakout Sessions and Two Member Roundtables
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IVSN Does Size Matter in Private Equity?
Speaker: Thomas P. Danis, Jr. / RCP Advisors, LLC
As private equity becomes increasingly popular and more capital is committed to buyout funds, it is important to analyze the different characteristics within this space. Record-sized buyout funds are being raised, but historical data suggests that smaller buyout funds realize more attractive returns. So what is driving this momentum and how should investors approach buyout fund investing? The speaker will address the key characteristics at both ends of the market and current issues facing today’s buyout environment.
Circle Opening Societies Through Giving: Open Society Institute
Speaker: Aryeh Neier / Open Society Institute
The Open Society Institute (OSI) aims to shape public policy to promote democratic governance, human rights and economic, legal, and social reform. OSI implements a range of initiatives to support the rule of law, education, public health and independent media. At the same time, OSI works to build alliances across borders and continents on issues such as combating corruption and rights abuse. In this session, Mr. Neier, President of the Open Society Institute, will discuss the work of OSI and the challenges and successes in working to build and maintain the infrastructure and institutions of open societies throughout the world.
Double diamond The Impact of Industry Cash Flows on Hedge Fund Alpha: Implications for the Private Investor
Speaker: Eric P. Bertonazzi / Wainwright Investment Counsel, LLC
The impact of large asset flows into and out of hedge funds has garnered much attention in recent years. This presentation will explore this issue by focusing on a few strategies most often mentioned in this light. The effect on returns and manager approaches will be discussed with respect to Long/Short Equity, Convertible Arbitrage, Merger Arbitrage and Statistical Arbitrage. The goal is to provide investors with an understanding of which concerns may be real and which may be exaggerated.
IVSN Member Roundtable on Fund of Funds
Facilitator: IPI Private Investor
Member Roundtables are an opportunity for private investors to share investing experience and information with their peers. Members are required to complete a brief survey in advance of the session and the data will be aggregated (without attribution). The survey
results will help the facilitator guide the session.
IVSN Member Roundtable on Hiring a Consultant
Facilitator: IPI Private Investor
Member Roundtables are an opportunity for private investors to share investing experience and information with their peers. Members are required to complete a brief survey in advance of the session and the data will be aggregated (without attribution). The survey results will help the facilitator guide the session.


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