How alternatives reduce portfolio volatility

What if one of the most overlooked $700 billion pools of capital in the U.S. is quietly shaping private markets? In this episode, I sit down with Jennifer Mink, President of Investment Performance Services, an investment consulting firm overseeing roughly $70 billion in assets under advisement, to discuss how Taft-Hartley pension plans approach long-term investing. Jennifer shares how IPS designs portfolios that balance public and private markets, using disciplined asset allocation and diversification to improve overall portfolio efficiency and manage risk across market cycles.

Highlights:

• How adding alternatives can reduce overall portfolio volatility through low correlation
• Why “double diversification” can dilute returns at the portfolio level
• The importance of grounding investments in a clear thesis to avoid emotional selling
• How IPS rebalanced aggressively during the 2020 market snapback
• What gets easier and harder when advising $70 billion across nearly 200 union plans
• Why emerging managers are typically tracked through three vintages before capital is deployed
• Red flags in early funds including team turnover, fee changes, and strategy drift
• The private equity distribution slowdown and pacing challenges facing LPs
• Structural requirements managers must meet to access Taft-Hartley capital, including ERISA fiduciary status
• The role of Responsible Contractor Policies in real asset mandates
• Why sometimes the best investment decision is the one you avoid
• How IPS tracks its own research process to ensure manager outperformance across cycles

Guest Bio:

Jennifer Mink is the President of Investment Performance Services (IPS), a 40-year-old investment consulting firm focused exclusively on the Taft-Hartley marketplace. IPS advises approximately $70 billion in assets and works with nearly 200 union plans nationwide. With more than two decades at the firm, Mink specializes in asset allocation, manager research, and private markets diligence, and leads a team that evaluates hundreds of managers annually while emphasizing disciplined structure, fiduciary responsibility, and consistency across full market cycles.

Our Podcast now receives more than 300,000 downloads a month. Are you interested in sponsoring an episode? Please email David Weisburd at david@weisburdcapital.com.

We’d like to thank AlphaSense for sponsoring this episode!

Sponsor:

AlphaSense is the AI-powered market intelligence platform trusted by 85% of the S&P 100, helping investment professionals make faster, more confident, data-driven decisions. Built for hedge funds, asset allocators, private venture capital firms, and investment bankers, AlphaSense uses advanced AI and powerful search across premium proprietary content to surface the insights that matter most—before the market moves. Elevate your research and stay ahead of the competition. Visit https://www.alpha-sense.com/howiinvest/ to learn more.

Stay Connected with David Weisburd:

X/Twitter: @dweisburd LinkedIn: https://www.linkedin.com/in/dweisburd/ Weisburd Capital: https://www.weisburdcapital.com/

Stay Connected with Jennifer Mink:

LinkedIn: https://www.linkedin.com/in/jennifer-mink-09057836b/

Questions or topics you want us to discuss on How I Invest? Email us at david@weisburdcapital.com.

Disclaimer:

This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Capital. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions.

(0:00) The Job of Deploying $70B in Institutional Capital (0:52) Why Alternatives Can Reduce Portfolio Volatility (3:03) The Biggest Behavioral Mistake Investors Make (4:31) How Institutions Invest During Market Crashes (6:08) What Gets Easier (and Harder) Managing $70B (8:05) How Consultants Diligence 300–400 Managers a Year (10:13) Why Institutions Wait Until Fund IV to Invest (13:34) The DPI Crisis Breaking the Endowment Model (15:05) The Hidden Rules for Raising Taft-Hartley Capital (22:28) The Best Investment Is Sometimes Saying No