Would you let an AI agent cast a real vote on your investment committee?

Chris Schelling, CAIA, joins Angelo Calvello to revisit their 2018 article on AI in manager selection — and reveal that one large private equity firm now has an autonomous AI agent with an actual vote on its investment committee. The conversation pivots to defense tech as part of a broader "American dynamism" venture thesis, then turns to a cautionary tale: the recent blowup of Situational Awareness, driven by concentration and leverage. They close on the democratization of private markets and whether alternatives belong in a 401(k).

Chris Schelling, CAIA, is an author, advisor, and investor with degrees in psychology, business, and finance. As an institutional investor, he has allocated roughly $7 billion and met with over 4,000 managers across hedge funds, real assets, private credit, and private equity. He was most recently Managing Director on the Pan-Alts team at Aksia, and previously Managing Director of Private Markets at The Caprock Group, Chief Investment Strategist at Venturi Wealth Management, Director of Private Equity at Texas Municipal Retirement System, and Deputy CIO at Kentucky Retirement Systems. He is the author of Better Than Alpha.

In This Episode:
(00:00) Introduction of guest Chris Schelling
(03:18) Revisiting the 2018 article on AI in institutional manager selection
(09:12) Barriers to AI adoption and accountability in the decision loop
(13:02) Defense tech as one piece of a broader American dynamism thesis
(19:46) Ukraine, dual-use technology, talent pipelines, and procurement reform
(27:28) Situational Awareness blowup: concentration, leverage, and retail enthusiasm
(35:13) Democratization of private markets and the rise of SPV jockeys
(38:59) Bringing private markets into the 401(k) and safe harbor risk
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Dr. Angelo Calvello is a serial innovator and co-founder of multiple investment firms, including Rosetta Analytics and Blue Diamond Asset Management. He leverages his extensive professional network and reputation for authentic thought leadership to curate conversations with genuinely innovative allocators and thinkers.

As the "Dissident" columnist for Institutional Investor and former "Doctor Is In" columnist for Chief Investment Officer (winner of the 2016 Jesse H. Neal Award), Calvello has become a leading voice challenging conventional investment wisdom.

Beyond his professional pursuits, Calvello serves as Chairman of the Maryland State Retirement and Pension System's Climate Advisory Panel, Chairman of the Board of Outreach with Lacrosse and Schools (OWLS Lacrosse), a nonprofit organization creating opportunities for at-risk youths in Chicago, and trustee for a Chicago-area police pension fund. His career-long focus on leveraging innovation to deliver superior client outcomes makes him the ideal host for cutting-edge institutional investing conversations.

Resources:
Produced by Castos Productions
Chris Schelling LinkedIn: https://www.linkedin.com/in/christopher-schelling/
Chris's newsletter, Alternatively Speaking: https://www.linkedin.com/newsletters/alternatively-speaking-7021478570250166272/