AIG CIO Dachille on Asset Management, Hedge Funds

The video discusses the importance of alternative investments for AIG, which holds $350 billion in assets. Due to the impracticality of managing all asset classes internally, AIG outsources management to outside managers, including hedge funds and separate accounts. The video highlights challenges with hedge funds, such as lack of transparency and ensuring no overlap with AIG's balance sheet. A case study is presented where tax-exempt income was found in a hedge fund's K1 form, prompting a review of investment strategies to avoid redundancy with AIG's internal management.

Why are alternative investments considered important to AIG?

What challenges does the speaker face in managing assets with outside managers?

How does the speaker ensure there is no overlap between the asset classes managed internally and those managed externally?

What unusual action did the speaker take regarding their K-1 forms from hedge funds?

What conclusion did the speaker reach about managing tax-exempt bonds in relation to their equity investments?