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I swear Ontario Teachers' Pension Plan is one of the worst managed funds I've seen. Every time I see buzzy company with little fundamentals, their latest rounds

I swear Ontario Teachers' Pension Plan is one of the worst managed funds I've seen. Every time I see buzzy company with little fundamentals, their latest rounds always includes this pension plan. Can someone explain their positions? Like if they want to move along the risk-reward curve, why not just buy fewer bonds and more ETFs? Why enter VC/crypto/etc?

laluser 4y ago
I am guessing because they have over 200-250B in assets, they will have some occasional risky bets here and there that seems like a lot, but is only a small percentage of their overall portfolio.
chollida1 4y ago
They are one of the best run pension funds in The world. They manage billions, their bc portfolio is a small part of their holdings but it’s been a bit money maker for them.
lbotos 4y ago
My Favorite Ontario Teachers Pension Plan fun fact is that they own the Bristol, UK Airport: https://en.wikipedia.org/wiki/Bristol_Airport https://en.wikipedia.org/wiki/Bristol_Airport
SeanAnderson 4y ago
I think it's just sampling bias? OTPP is one of the world's largest institutional investors, quarter trillion under management. Their investment into FTX represents like... 0.002% of available capital. https://www.otpp.com/en-ca/investments/our-investments/teachers-venture-growth/ https://www.otpp.com/en-ca/investments/our-investments/teach... (EDIT: 0.2% not 0.002%)
- tedunangst 4y ago
  Show your work on the 0.002% calculation?
  - jefftk 4y ago
    "$400M" / "a quarter trillion" = 0.002, or 0.2%. They probably messed up on the percentage translation?
  - SeanAnderson 4y ago
    https://en.wikipedia.org/wiki/Ontario_Teachers%27_Pension_Plan#Investments https://en.wikipedia.org/wiki/Ontario_Teachers%27_Pension_Pl... 420M investment, 221B total (178 in TIP), 420/17800 = 0.0019 but math with percentages is hard and what I said was incorrect :) .19% I think that still seems like a reasonable amount to put in based on risk guidance I've seen for individual investor portfolios, but is definitely much higher than what I implied with my original comment. Sorry!
- acchow 4y ago
  How does one determine that 250bn is "one of the world's largest?" I just looked up a top 50 list and the lowest on the list is 333bn.
  - deleted 4y ago
    [deleted]
acchow 4y ago
"have earned an annual total-fund net return of 9.6% since the plan's founding in 1990" 9.6% sounds pretty stellar to me. This is much better than many funds. Calpers' 30 year return is 7.7% annualized.

laluser 4y ago

I am guessing because they have over 200-250B in assets, they will have some occasional risky bets here and there that seems like a lot, but is only a small percentage of their overall portfolio.

chollida1 4y ago

They are one of the best run pension funds in The world. They manage billions, their bc portfolio is a small part of their holdings but it’s been a bit money maker for them.

lbotos 4y ago

My Favorite Ontario Teachers Pension Plan fun fact is that they own the Bristol, UK Airport: https://en.wikipedia.org/wiki/Bristol_Airport https://en.wikipedia.org/wiki/Bristol_Airport

SeanAnderson 4y ago

I think it's just sampling bias? OTPP is one of the world's largest institutional investors, quarter trillion under management. Their investment into FTX represents like... 0.002% of available capital. https://www.otpp.com/en-ca/investments/our-investments/teachers-venture-growth/ https://www.otpp.com/en-ca/investments/our-investments/teach... (EDIT: 0.2% not 0.002%)

tedunangst 4y ago
Show your work on the 0.002% calculation?
- jefftk 4y ago
  "$400M" / "a quarter trillion" = 0.002, or 0.2%. They probably messed up on the percentage translation?
- SeanAnderson 4y ago
  https://en.wikipedia.org/wiki/Ontario_Teachers%27_Pension_Plan#Investments https://en.wikipedia.org/wiki/Ontario_Teachers%27_Pension_Pl... 420M investment, 221B total (178 in TIP), 420/17800 = 0.0019 but math with percentages is hard and what I said was incorrect :) .19% I think that still seems like a reasonable amount to put in based on risk guidance I've seen for individual investor portfolios, but is definitely much higher than what I implied with my original comment. Sorry!
acchow 4y ago
How does one determine that 250bn is "one of the world's largest?" I just looked up a top 50 list and the lowest on the list is 333bn.
- deleted 4y ago
  [deleted]

acchow 4y ago

"have earned an annual total-fund net return of 9.6% since the plan's founding in 1990" 9.6% sounds pretty stellar to me. This is much better than many funds. Calpers' 30 year return is 7.7% annualized.