2015 Forty Under Forty

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Ryan BaileySenior Director of Investments
Children’s Health System of Texas
(Dallas, TX) 39

(Art by Dadu Shin)

“Ryan has recently been brought on to head and build out the entire investment enterprise at Children’s Health. He is the sole investment professional at Children’s which has more than $1 billion of assets.”

Your least favorite part of being an asset owner is...

When the unforeseen happens.

...and your favorite?

When an investment goes exactly the way we forecasted.

Imagine you are an investment consultant: What is the first thing you tell your clients?

Have a long-term view and keep your eyes on your goals, not someone else’s.

Which asset-owning peer—either person or fund—do you most admire?

Robert Durden of Texas Children’s Hospital. When I first joined Children’s Health, he contacted me and offered me his support when he didn’t have to.

The trend in asset management you never want to hear about again is...

Smart beta, portable alpha, risk parity... I think people buy into these concoctions from time to time without really understanding what they are.

...and the trend that isn’t getting enough attention?

Global macro and CTA hedge funds.

Name your favorite food and drink.

A good buffalo burger and smoothies.

What three websites do you visit most often?

CNBC, Stockcharts.com, and LinkedIn.

The manager you don’t currently work with whose brain you’d most like to pick for an hour is...

Mark Anson, the former CIO of Oak Hill Investment Management and the author of the Handbook of Alternative Assets.

...and where would that meeting take place?

At a location of his choosing.

Describe the weirdest interaction you’ve had with an asset manager.

During a meeting about a potential pharmaceutical partnership with a biotech venture capital firm, I was stuck in an elevator with a monkey on a gurney that had been under anesthesia but started waking up in the elevator and struggled to get loose. I was a little shaken up... and the partnership didn’t go through.

Besides the job you have now, what are your career ambitions?

I hope to be a CIO and a professor/author sometime later in life.

What asset class or investment troubles you most right now—and why?

Fixed income. Yields are extremely low so you’d have to take incremental risk on the credit side. The reward is asymmetrical and not in your favor.

Name a cultural aspect of asset management that gets under your skin.

I wish there were more attention paid to developing and mentoring future talent.

In 2025, the state of the institutional investing world will be...?

The industry will have developed a new and profound respect for investing in venture capital; health care and hospitals will have come to the fore and be recognized as better investors; and alternatives will be more prevalent in institutional portfolios.