How $70 Billion Gets Allocated During Market Chaos

Podcast: How I Invest with David Weisburd
Episode: E322
Date: March 11, 2026
Guest: Jennifer (President, Investment Performance Services)

Episode Overview

In this episode, David Weisburd sits down with Jennifer, President of Investment Performance Services (IPS), an investment consulting firm advising on approximately $70 billion in assets, primarily within the Taft-Hartley marketplace. The conversation delivers a rare look inside how large institutional pools allocate capital, educate stakeholders, manage risk, and adapt to changing market conditions — all while being extremely focused on stewardship, consistency, and the needs of American workers. Special attention is given to alternative investments, diligence of asset managers, and the often-overlooked Taft-Hartley fund universe.

Key Discussion Points & Insights

1. Decreasing Volatility While Increasing Returns

• Diversification Beyond Conventional Wisdom:
  Jennifer highlights that adding asset classes with higher standalone volatility, such as private equity or infrastructure, can lower a portfolio's overall risk due to their lower correlation with traditional assets (00:18–01:38).
• Notable Quote:

  "When we add [private assets] to the investment portfolio, it actually decreases the overall ... volatility of the portfolio simply by having that lower correlation ... sometimes having more things in the portfolio is less risky than only having a few ... less volatile investments."
  — Jennifer, 00:54

2. Common Investor Mistakes

• Double Diversification and Misunderstanding Risk:
  David points out that investors often over-diversify both at the fund and portfolio level or misinterpret asset-level risk without considering portfolio context (01:38–02:31).
• Education as a Core Service:
  Jennifer stresses the firm's responsibility to educate clients, ensuring they understand the rationale behind recommendations and the implications for risk and return (02:31–03:03).

3. Thesis-Driven Investing & Managing Emotion

• Avoiding Premature Exits:
  David uses Bitcoin as an example to demonstrate the pitfalls of lacking an investment thesis, especially during volatile periods.

  "If you had no fundamental view on the Bitcoin, you might have sold at 70, you certainly would have sold at $150 ... knowing not only when to buy ... understanding the fundamental thesis behind it helps you not only not sell early when it's down..."
  — David, 03:03

• Contrarian Approach & Rebalancing During Downturns:
  Jennifer explains that holding steady (or doubling down) during downturns, guided by education and conviction, is essential for long-term success (03:50–04:42).

4. Real-Time Crisis Management — Lessons from 2020

• Proactive Advice in Unprecedented Times:
  During the pandemic crisis, IPS communicated aggressively with clients, encouraging rebalancing into equities at the market nadir. Clients who acted on this advice saw the greatest portfolio recoveries (04:42–06:04).
• Notable Quote:

  "It’s really trying to hold the feet to the fire to put money in when your emotions are telling you not to ... our clients that were proactive and took the recommendations, their portfolios performed the best that year."
  — Jennifer, 05:41

5. Operational Scale: What Gets Easier vs. Harder at $70B?

• Scale Brings Structure, Not Complacency:
  Growth has led to discipline in research and process, but selection criteria remain unchanged regardless of scale (06:09–06:50).
• People & Mission as Limits to Growth:
  Talent recruitment post-Covid is a growing challenge, with focus on finding mission-driven team members (06:56–07:50).

6. Manager Diligence and High Success Rate

• Extensive Due Diligence:
  IPS evaluates 300–400 managers annually, driven by a large and well-networked research team (09:29–10:49).
• Approach to Emerging Managers:
  IPS rarely invests in unproven managers immediately; instead, they track new teams across multiple fund vintages and look for stability, consistency, and adherence to claims before allocation (11:00–13:36).
• Notable Quote:

  "If I had to pick one word to describe IPS, it would be consistent."
  — Jennifer, 11:44

7. Red Flags in Manager Evaluation

• Stress Testing Across Cycles:
  Major warning signs are team turnover, fee inconsistencies, missed benchmarks, or legal/regulatory hiccups. Slow PE distributions are also a current industry challenge (17:53–18:57).

8. Structural Alpha and Taft-Hartley-Specific Requirements

• Customization is Key for Accessing Union Capital:
  For private funds interested in Taft-Hartley dollars, two key hurdles are ERISA fiduciary acceptance and Responsible Contractor Policy (RCP) clauses—protecting union worker rights and labor (20:28–23:22).
• Education Flows Both Ways:
  Jennifer notes their role in educating promising managers on these requirements so they can potentially access the capital pool.
• Notable Quote:

  "...if you want to work in the Taft-Hartley space ... these are really the two things that you're going to need: that ERISA language, as well as the responsible contractor policy."
  — Jennifer, 20:46

9. Industry Misperception & The Scale of Taft-Hartley Funds

• Undervalued Asset Class:
  Jennifer notes the Taft-Hartley market—approximately $700B—is consistently underestimated by industry outsiders (23:45–24:21; see also 30:09).

10. The Power of Saying No

• Discipline as a Strength:
  Jennifer emphasizes that refusing hot trends and staying true to established criteria is sometimes the best investment action (24:57–27:45).
• Notable Quote:

  "We have a saying that sometimes the best investment you make is the one you avoid."
  — Jennifer, 27:45

11. Personal Reflections and Diversity in Finance

• Advice to Younger Self:
  Jennifer would advise her younger self not to take business personally and underscores the importance of resilience, especially as a woman in a male-dominated field (28:00–28:54).
• On Being Underestimated:

  "Women in general are extremely meticulous and have an attention to detail that I think men do not have ... I'm going to show up, I'm going to be ready to go, I'm ready to compete."
  — Jennifer, 29:07

Notable Quotes

• "[W]hen we add [private assets] to the investment portfolio, it actually decreases the overall ... volatility of the portfolio simply by having that lower correlation." — Jennifer, 00:54
• "It's really trying to hold the feet to the fire to put money in when your emotions are telling you not to." — Jennifer, 05:41
• "If I had to pick one word to describe IPS, it would be consistent." — Jennifer, 11:44
• "We have a saying that sometimes the best investment you make is the one you avoid." — Jennifer, 27:45
• "As a woman in a male-dominated business ... if people aren't talking about you, then you're probably not doing anything important." — Jennifer, 28:54
• "[T]he Taft-Hartley market ... is consistently underestimated by industry outsiders." — Jennifer, 23:45

Segment Timestamps

• Decreasing Volatility via Diversification: 00:18–01:38
• Common Mistakes & Portfolio Construction: 01:38–03:03
• Behavioral Finance & Thesis-Driven Investing: 03:03–03:50
• 2020 Pandemic Portfolio Management: 04:42–06:04
• Scaling Up: Challenges and Structure: 06:09–07:50
• Manager Sourcing & Diligence Explained: 09:29–13:36
• Red/yellow Flags & Pacing in PE Allocations: 17:53–19:39
• Structural Alpha & Taft-Hartley Nuances: 20:28–23:22
• State of Taft-Hartley Industry: 23:45–24:21, 30:03–30:37
• Investment Discipline & Saying No: 24:57–27:45
• Career Reflection & Diversity Insights: 28:00–30:09

Memorable Moments

• Jennifer's real-time communications and commitment to rebalancing during the 2020 crisis, which led to best-in-class recoveries for her clients (05:41).
• The "hard no" approach to industry fads, favoring understanding and discipline over chasing trends (27:45).
• Unique insight into the rarely-discussed $700B Taft-Hartley fund market, including detailed explanations of governance and operational diligence not typically available in mainstream finance podcasts.

Conclusion

This episode offers rare institutional-level wisdom—combining technical acumen, behavioral insights, and a behind-the-scenes look at the under-the-radar but hugely significant Taft-Hartley capital pool. Jennifer’s focus on education, communication, and steadfast consistency serves as a blueprint for long-term stewardship in volatile and complex markets.