Reino is a member of NEPC’s research team, helping to generate new investment ideas, assess market opportunities and guide client portfolio construction. His areas of expertise include credit-related strategies and alternatives. Reino has worked with a wide range of clients across healthcare systems, public and corporate pension plans, private wealth and endowments and foundations. Prior to joining NEPC in 2011, Reino worked at State Street as part of the Private Equity group, focusing on the valuation of clients private equity portfolios. Reino is also a part of NEPC’s Impact Investing Committee where he has been a significant contributor, working on strategy development, manager research, producing and presenting educational materials and authoring white papers on the subject of ESG integration.
“Hedge funds are not an asset class,” Reino Ecklord, research consultant within the hedge fund practice at NEPC said at a panel discussion.. “Hedge funds really represent a variety of different strategies, a variety of different skill sets.”
By moving away from a dedicated allocation to hedge funds, investors can be more selective in opportunities within the space and the risk they are willing to take, Ecklord later expressed to CIO.
For example, some credit portfolios may include passive exchange traded futures exposure to high-yield bonds, long-only high-yield strategies, and private credit. Given the current environment, where spreads are tight and the potential downside to convexity exists, there may be value in a long-short hedge fund strategy, according to Ecklord.
“A credit long-short hedge fund might make sense within your credit portfolio; hopefully, giving you similar risk exposures but a more consistent high-return expectation,” he said.26 September 2019
Some hedge fund managers already have incorporated ESG into their investment process and the conversation about what they are investing in is evolving to become more explicit about ESG.20 June 2019