Jane Buchan on Alternatives, Diversification, and Investor Agency
This TREUSSARD TALKS interview with Jane Buchan examines alternatives by mechanics rather than labels. We talk about private equity as levered equity, private credit as floating‑rate credit with still‑evolving default and workout paths, and hedge fund strategies as tools that reshape exposure, correlation, and payoff through long/short construction and constraints.
Globalization has raised cross‑market correlations, which makes category labels less informative. We focus on where diversification still adds value: payoff shape and correlation management.
We also get specific about first‑order risk controls. Separate accounts limit manager discretion and reduce commingling risk. Clear custody and trade execution can reduce operational failure modes.
The aim is a repeatable process that remains “roughly right” across cycles rather than a forecast that must be exactly right once.
Prefer substance over slogans? Wealth, Empowered is a twice‑monthly note on how real investors make real decisions. Each issue breaks down portfolio mechanics and risk management in plain English, applies behavioral finance to cut through narrative traps, and offers practical steps you can use now. Expect clear frameworks, short prompts to pressure‑test your plan, and occasional deep dives on policy, markets, and what actually helps preserve agency through stress.
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What we cover in this conversation
Defining “alternatives” by mechanics, not labels
Private equity vs. hedge funds: leverage, long/short construction, capacity
Private credit and direct lending: floating rates and default plumbing
Global correlations and where diversification still helps
Due diligence that preserves control: separate accounts, custody, fees
Narrative risk, capacity limits, and liquidity discipline
Key takeaways
Size by economic exposure. Private equity = levered equity. Private credit = floating‑rate credit with evolving workouts.
Structure is a risk control. Separate accounts, clear custody, transparent execution protect agency.
Diversification still works. Correlation and payoff shape matter more than labels.
Process beats prediction. Aim to be roughly right across cycles.
Timestamps
00:00 Welcome
03:30 Defining alternatives and the frontier‑to‑mainstream lifecycle
08:00 Correlations and diversification’s role
12:30 Private equity vs. hedge funds: mechanics and capacity
18:00 Private credit, floating rates, and default “plumbing”
23:00 Narrative risk and avoiding magical thinking
27:00 Separate accounts, custody, execution transparency
30:00 Careers, curiosity, asking better questions
32:30 Rapid‑fire Q&A and close
About Jane Buchan
Jane Buchan is CEO of Martlet Asset Management, co‑founder of PAAMCO (grew to $32B AUM), former Dartmouth finance professor, and a longtime leader at CAIA. She serves on multiple boards and is recognized for advancing alternatives education and investor advocacy.
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Questions we answer
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Private equity = levered equity.
Private credit = non-bank floating‑rate credit with evolving workout/default mechanics.
Hedge funds = strategy sets that change exposure, correlation, and payoff shape.
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They directly address manager, operational, and counterparty risks, preserving control and reducing the likelihood of forced decisions under stress.
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Disclaimer
The content of “Treussard Talks” is for informational and educational purposes only and should not be considered financial advice. The views expressed are those of the host and guests and do not necessarily reflect the opinions of Treussard Capital Management or its affiliates. Consult your own financial advisor before making any investment decisions. For full disclosures, visit treussard.com.