Memberlink® - 2006 Winter Forum for Private Investors

Location: The St. Regis Hotel, San Francisco

= Novice

= Intermediate

= 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.

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 Institute 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, February 28, 2006

8:15am - 9:15am Choice of Four Breakout Sessions

	Future of the Death Tax Speaker: Patricia M. Soldano / Cymric Family Office Services The estate tax has been on the books since 1916, but for the last 14 years there has been a sustained effort to eliminate it. In 2005 the House passed permanent estate tax repeal (HR8) and the Senate was set to vote on it before the Labor Day recess, and the hurricanes hit. It was taken off the Senate calendar for 2005 to deal with hurricane disaster relief. Will Congress and the President still have the political will, and the country have the economic capability, to eliminate the tax in 2006? This presentation will explain the history of the estate tax repeal efforts and discuss the likelihood of the estate tax being eliminated.
	Members on The Grill® - Technology in the Family Office Grillee: Karen Jandorf /Harris myCFO, Inc. Allan Zachariah /Harris myCFO, Inc. Griller: David Bailey / Northern Trust How should technology be used in the family office? Will the “virtual” family office become the standard as technology allows immediate access to the measurement and reporting of the aggregated portfolio? What are the challenges of a “virtual” family office vs. a more traditional operation? 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.
	Newer Member Roundtable Facilitator: Kristi Kuechler / IPI Open to both veteran and newer members, this session allows a more comfortable format for getting to know fellow members.
	When Mean Things Happen to Nice Asset Classes Speaker: Jonathan Lewis / Samson Capital Advisors LLC The past several years have witnessed a stream of low probability events come true: stocks collapsed, accounting scandals shook the world, bonds spreads expanded and contracted in rapid order, fears of deflation seized the Treasury market and mortgage prepayments spiked in an unprecedented manner – what’s next? How can we envision the possibilities and accommodate these unpredictable events in our asset allocation models and our active investment strategies? Mr. Lewis will lead us in thinking “outside the box” about how to prepare for the unforeseeable.

9:15am - 9:45am - Coffee, Tea & Networking

9:45am - 10:45am Choice of Four Breakout Sessions

	Developing Investment Policy Statements Speaker: Keith McWilliams, CFA / Mt. Eden Investment Advisors In this session, members find out the how and why of crafting an Investment Policy Statement. What are the components of a sound investment policy and what is the basic analysis behind those components? How different should an investment policy be from family to family? How do the money managers you hire get involved, if at all? Whose responsibility is the establishment of policy; the family’s or the advisor’s? Most importantly, how do you express complex policy concisely in one page?
	Global Asset Allocation for Family Offices - An International View Speaker: Pictet & Cie. Banquiers In this session, we will look at how diversification across global markets may provide correlation benefits to the overall portfolio. What factors must be considered when determining if and how much non-U.S. investment exposure is appropriate for U.S. clients? The session will review the benefits, costs and considerations that need to be explored and understood by U.S. investors when considering investments outside the U.S.
	Preempting Estate Litigation Speaker: Keith Bartel, Esq. / Carr McClellan Ingersoll Thompson & Horn Senior family members typically structure their estates to ensure an orderly transition of their assets after their passing. In this session, Mr. Bartel will discuss ways to avoid disputes over estates. We will look at how to structure testamentary documents to reduce future litigation and consider ways in which fiduciaries often become involved in litigation. In the event that litigation cannot be avoided, we will look at alternative dispute resolutions and settlement costs.
	Socially Responsible Investing Speaker: H. Penny Knuff, CFA/ Fiduciary Trust Company International For years, affluent families aspiring to invest their capital according to their values have sought socially responsible mutual funds. But these funds often limit investors’ options to a limited spectrum of concerns. In this session, Ms. Knuff will discuss the use of separate accounts in individual, tailored portfolios as vehicles for socially responsible investing as a way to both support particular causes and maximize return.

10:45am - 11:00am - Coffee, Tea & Networking

11:00am - 12:00pm Keynote Session

Keynote Session - Beyond Markowitz: Building a Practical Framework for Asset Allocation and Behavioral Finance
Keynote Speaker: Ashvin B. Chhabra / Merrill Lynch- Global Private Clients

12:00pm - 12:15pm Pre-Luncheon Refreshment

12:15pm - 1:45pm Choice of Two Luncheon Sessions

Nanotechnology - The Economics of Matter
Speaker: Josh Wolfe / Lux Capital
What’s driving nanotechnology as an area ripe for investment? Nano is impacting all industries from textiles to building materials to sporting equipment to semiconductors and targeted cancer therapies to cures for diabetes.

What is nanotechnology?
What are the investment drivers and the secular trends behind the field?
What near-term applications will the biggest returns (10x or more) derive from?
How does nanotech broadly impact all the holdings across your entire portfolio?
What precedent industries from history can we use to guide us?
What business models will be the winners?

Philanthropy and the Environment
Speaker: Richard Fuller / Blacksmith Institute
Richard Fuller has committed himself and his resources to improving both the environment and the lives of those living in poverty. Recognizing the extraordinary suffering caused by environmental disasters in the Third World, Mr. Fuller founded the Blacksmith Institute to identify the world’s worst polluted sites, develop practical methods to mitigate the pollution and then work with local groups to complete the mitigation efforts. His work has taken him from the Amazon rainforest to Siberia, from meetings with Heads of States to poor communities in China, Russia and India and Africa. The organization that he has created now spans 14 countries with more than 50 projects directly working to improve the health of children living in poverty around the world.

1:45pm - 2:00pm Coffee, Tea & Networking

2:00pm - 3:30pm Choice of Four Breakout Sessions

	Evaluating Money Managers (Followed by Member-to-Member Exchange on Money Managers) Speaker: Mary Mewha / First Republic Bank The selection of a money manager is a complicated decision. What are investors looking for in their managers: alpha, integrity, consistency? Ms. Mewha will give a brief presentation on what to look for in the selection and evaluation of a money manager. Following the presentation, we will have a Member-to-Member Roundtable allowing IPI members to share information on how they select and evaluate money managers.
	Family Trusts: Individual vs. Corporate Trustee (Followed by Member-to-Member Roundtable on Family Trusts) Speakers: James L. Kronenberg / Bessemer Trust Company, N.A. Philip Hayes/Bessemer Trust This session will discuss the selection of a trusted individual vs. an established financial institution to be trustee of a family trust. We will discuss the issues of experience, conflict, financial acumen and fees. Following a presentation by Mr. Kronenberg, we will have a Member-to-Member Roundtable discussing how IPI members select and manage trustees for their own families’ trusts.
	Invest in Change - Changing the Way Philanthropy Is Done (Followed by Member-to-Member Roundtable on Philanthropy) Speaker: Steve Beck / Geneva Global Inc. Effective philanthropy changes lives and builds communities; good intentions alone do not. Too often when people “give” money, they feel their role is finished when the funds have been transferred to the charity. Often they know too little about the actual needs, the plan to address them, or the expected results. By contrast, astute investors expend considerable effort reading research, establishing objectives, creating a plan, consulting independent advisors. They forecast a return, assess the risk, measure results and modify their investment strategies accordingly. This session will explore practical ways in which an investment approach can be applied to increase both the impact and joy from your philanthropy. Following a presentation by Mr. Beck, we will have a Member-to-Member Roundtable allowing IPI members to discuss incorporating an outcome-based approach in their own philanthropy.
	Reevaluating Risk Metrics: Beyond the Sharpe Ratio (Followed by Member-to-Member Roundtable on Risk) Speaker: Warun Kumar / Sigma Advisors, LLC Facilitator: Holly D’Annunzio / CTC Consulting, Inc. Evaluating and measuring risk is a crucial factor in your investing decisions, especially in constructing a collection of hedge funds. How should investors evaluate risk metrics and what type of risk should be of most concern? How should an investor assess the interplay between risk and return in their overall portfolio as well as in their individual funds? Mr. Kumar will give a presentation exploring risk metrics in a fund of funds or collection of hedge funds, challenging traditional thinking relating to risk and return. Then, Ms. D’Annunzio will facilitate a Member–to–Member Roundtable allowing IPI members to share information on how they consider and assess risk in their own portfolios.

3:30pm - 3:45pm Coffee, Tea & Networking

3:45pm - 4:45pm Keynote Session

Keynote Session - New Thinking in Private Equity
Keynote Speaker: David Bonderman / Texas Pacific Group

5:00pm Reception

6:30pm Dinners hosted by Leaders Council

Wednesday, March 1, 2006

8:15am - 9:15am Choice of Four Breakout Sessions

	Indexing Private Equity: The Evolution of a Benchmark Speaker: Susan Woodward / Sand Hill Econometrics The Sand Hill Index, published by Sand Hill Econometrics, is an index for venture capital that is the analog of the Wilshire 5000 for venture-funded companies. It is built from data on 65,000 valuation events (private rounds of funding, acquisitions, public offerings and shutdowns) for 17,000 private companies. These companies comprise very close to 100% of venture investments since 1989. The efforts to build the index include, as the name suggests, a lot of fancy statistics, but even more an effort to clean and organize data. In this session, Dr. Woodward will discuss the evolution of this benchmark and discuss how the index can be used to measure the performance of venture portfolios, and to measure risk and return to venture investing overall.
	Member-to-Member Roundtable: Results of Family Office Compensation Survey Facilitator: Kristi Kuechler / IPI In this session, we will discuss the results of IPI’s recently-completed compensation survey for Family Office Executives. We will discuss specific job responsibilities of family office executives, regional influences on compensation, base salary ranges, incentive programs and other non-wage compensation benefits, and the varying objectives (both financial and non-financial) of a family office. Come add your contributions to this timely topic.
	Succession Management: Successfully Transferring Responsibility and Control from the Founder Speaker: Albert W. Leland / Independent Consultant This session will position you to think about desired outcomes for you and your family as it relates to the Family Business. Understanding the role the Family Business plays in the lives of each generation and specific individuals is crucial to orchestrating a positive outcome. Most likely not a topic of conversation at holiday dinners, it is safe to assume that the health of the Family Business is of concern and discussed amongst siblings on a regular basis. Real value is at stake and more importantly family unity is at risk if succession issues are not addressed on a timely basis. Mr. Leland will lead off with a brief presentation and then facilitate a discussion amongst the participants.
	Treasury Inflation Protected Securities (TIPS) Speaker: Christopher Kinney / Brown Brothers Harriman & Co. Inflation and inflation expectations today have a direct impact on Treasury Inflation Protected Securities (TIPS). In this session, participants will discover the various cyclical and secular considerations of these bonds and what has been learned from past TIPS returns. In addition, Mr. Kinney will explore asset allocation implications of TIPS for the taxable investor as well as discuss inflation protected municipals.

9:15am - 9:45am Coffee, Tea & Networking

9:45am - 10:45am Choice of Four Breakout Sessions

	Trouble with Optimizers Speaker: Ezra Zask / Azimuth Alternative Assets Asset allocation is widely acknowledged to be more important than manager selection in portfolio construction. However, the techniques for optimal asset allocation yield less than satisfactory results. Portfolio optimization is the leading technique in the academic literature. However, in practice, portfolio optimizers have severe drawbacks that make them all but unusable. Among these drawbacks are: assumptions of normal distribution, use of historical data, unstable allocations and dominance of one or two strategies. This presentation will discuss the problems in utilizing portfolio optimization for portfolio construction and asset allocation, as well as suggest some alternative techniques for both modifying mean-variance optimization with more realistic assumptions to the use of alternative methods such as Cornish-Fisher and Black Litterman that produce more robust and realistic solutions.
	Special Purpose Acquisition Companies (SPACs): Liquid Private Equity Speaker: Deborah H. Quazzo / ThinkEquity Partners SPACs, or Special Purpose Acquisition Companies, are increasingly popular in the investment community. The advent of Sarbanes Oxley and the reality of companies going public later and bigger has provided a unique opportunity for SPACs. For companies it provides access to growth capital and the public markets. For investors it provides an investment in “liquid private equity.”
	REITs: The Next Five Years Speaker: Michael A. Torres / Adelante Capital Management LLC This session will give a “mid-decade review” of public and private Real Estate Investment Trusts. We will discuss the anatomy of these vehicles—property types, capital structures, management teams, and investor relations. Additionally, we will explore future trends in the REIT market. The investment characteristics of REIT debt, equity, and preferred equity will be presented, and the process of evaluating various real estate allocation levels will be discussed. In this session, led by the creator of the Wilshire Real Estate Securities Index, participants will gain the insights necessary to evaluate this asset class for the next five years.
	The Psychology of Wealth: Making the Best of a Good Situation Speaker: Thayer Willis For most of us, taking charge of our own family psychology is an art. In the wealthy family, all of the inherent characteristics and dynamics are magnified. Senior family members and professional advisors can play a pivotal role in helping all family members identify challenges and meet them well. This session is filled with field-tested ideas that will clarify the process of understanding, problem solving and action planning. Thayer Willis - a pioneer in the area of wealth counseling and author of Navigating the Dark Side of Wealth - will provide you with the tools you need to create pathways among generations, prioritize parenting tasks, and facilitate financial literacy and competence in young family members.

10:45am - 11:00am Coffee, Tea & Networking

11:00am - 12:00pm Keynote Session

Keynote Session - Challenging Cap-Weighted Benchmarks
Keynote Speaker: Robert D. Arnott / Research Affiliates, LLC

12:00pm - 12:15pm Pre-Luncheon Refreshment

12:15pm - 1:45pm Choice of Two Luncheon Sessions

Avoiding a Bayou: Hedge Fund Due Diligence
Speaker: John Shearman / Albourne America LLC
When it comes to protecting a hedge fund investor from hedge fund fraud, there is no silver bullet. However, by understanding the nature of hedge fund fraud and following a stringent due diligence process you can significantly reduce the probability of investing in a fraudulent manager like Bayou or Wood River.

Managing Concentrated Stock Risk: Hedging and Taxation Issues
Speakers: Scott D. Welch / Lydian Wealth Management
Cliff Quisenberry, CFA / Parametric Portfolio Associates
Despite living through dramatic market declines and horror stories from friends, colleagues and the media, many investors continue to hold too much of their net worth in a single, concentrated stock position. This presentation addresses the often difficult decision of “hold, hedge or sell” and focuses on increasing the tax efficiency of one of the most commonly used financial strategies, variable prepaid forwards.

1:45pm - 2:00pm Coffee, Tea & Networking

2:00pm - 3:00pm Choice of Three Breakout Sessions

	Dirty Little Secrets of VC Returns Speaker: Diana H. Frazier / FLAG Capital Management, LLC The attractive returns generated by venture capital and private equity funds, relative to other investment opportunities, have created intense demand for the asset class. With over 25 years of experience in private investing, our speaker will provide insights on the challenges of achieving those returns…and offer an insider’s view for avoiding the pitfalls associated with such illiquid assets.
	Managing Multiple Residences Speakers: Carol Lichtenberg /The Threshold Group Todd Ward /The Threshold Group This session is designed to help families confront the delightful challenges of enjoying and managing multiple residences. The focus of this presentation will be on the pitfalls associated with running a residence when not living in the area, problems associated with the management of the property that can be costly and frustrating, and the major difficulties associated with overseeing construction work from a remote location. Specific “case studies” – of challenges faced and solutions offered – will be shared with participants of this session
	Myths and Misconceptions About ETFs Speaker: Robert N. Gordon / Twenty-First Securities Corporation Exchange Traded Funds are on a roll. But do they really deserve all this attention? Just how well are ETFs doing their jobs? What are the costs and true benefits?

The Institute performs no due diligence on investment products or firms and is not recommending the products presented. Members should perform their own extensive due diligence. ©1995–2007 Institute for Private Investors. All rights reserved.
Your use of this site is governed by the Terms of Service.