ECONOMIC SILUET: CNBC's Delivering Alpha Highlights

Jumat, 01 Oktober 2021

CNBC's Delivering Alpha Highlights

"Since last year's Delivering Alpha, markets are up 30% to 50%… we're enjoying it, but this is not a normal time period."

-- MARY CALLAHAN ERDOES, J.P. Morgan Asset & Wealth Management CEO

CNBC's 11th annual Delivering Alpha summit on Wednesday, September 29, 2021 featured important discussions with the biggest names in the investment community on market volatility, public vs. private markets, inflation concerns, the future of SPACs, China Inc., crypto regulation and the climate revolution.

Register now for Delivering Alpha On Demand where you can watch all the full panels and breakout sessions.

PROGRAM HIGHLIGHTS

THE ALPHA MAVERICK

CHAMATH PALIHAPITIYA, Social Capital Founder and CEO, predicted "there's going to be a lot of (US market) volatility" which could start "in China." He said he's not investing in China right now, thinks crypto "is the most profound iteration of the internet that we've seen" and bitcoin "has effectively replaced gold and will continue to do so." He is also "very concerned about medium-term inflation" and sold his Tesla stock "in the last year or so." He told CNBC's Scott Wapner that he has 40% of his money in climate change, 40% allocated for life sciences and experiments with 20% in "deep tech, crypto and AI."

GAINING ALPHA ALTITUDE

BRAD GERSTNER, Altimeter Capital Chairman and CEO, said "in the technology space, we have to hold two simultaneous truths… our net exposure today is 50% vs. 90% last year" yet "we're deploying venture capital as aggressively as we ever have because we think the next 10 years is going to be a period of even more value creation than the last 10 years." He told CNBC's Scott Wapner that his largest holding is still Snowflake and his only exposure to China is ByteDance. He also said he bought Zoom and Peloton on pullbacks and sold positions in United Airlines and Expedia. "There will be some winners and losers but the easy gains off the Covid bottom have certainly been made."

WHEN DELIVERING ALPHA COMES WITH CRYPTO VOLATILITY

KATIE HAUN, Andreessen Horowitz General Partner, discussed their new $2.2 billion cryptocurrency-focused fund, stablecoin demand, China's own digital currency and why she's excited about NFTs. "We're going to start seeing a shift in consumer expectations about what it means to own digital goods in a way that will be very important in years to come." The former federal prosecutor told CNBC's Kate Rooney that, in addition to the SEC's oversight, what's needed is "a regulatory sandbox to continue to foster innovation in this country and I think that would require an act of Congress."

ALPHA WITH IMPACT

JIM COULTER, TPG Executive Chairman and Founding Partner, said he's very interested in carbon credits as a currency and new quick-phase storage. Coulter, who manages the $5 billion-plus TPG Rise Climate fund, told CNBC's Andrew Ross Sorkin "you're about to see a few of the greatest battles in the history of business play out" between legacy and new players in the battery and EV markets. "There will be chaos in the market… but there is opportunity in that chaos." Coulter also cautioned "stuff happens in October… so strap in!"

ALPHA BRAVO

ORLANDO BRAVO, Thoma Bravo Co-Founder and Managing Partner, has made six deals this year with a combined transaction value of $40 billion. "In our 20 years of private equity investing in software... this is the best time for us." He told CNBC's Leslie Picker that he sees "huge opportunities" in cybersecurity and is bullish on bitcoin. "How could you not love crypto?… It's frictionless. It's decentralized. And young people want their own financial system. So, it is here to stay."

WHERE IS ALPHA NOW?

MARY CALLAHAN ERDOES, J.P. Morgan Asset & Wealth Management CEO, ASHBEL WILLIAMS, Florida State Board of Administration Executive Director and CIO and JASON KLEIN, Memorial Sloan Kettering Cancer Center CIO, discussed the upside of investing in China and Europe and why active management makes sense now. Erdoes told CNBC's Becky Quick that "the froth has continued, and the question is only time will tell how long that will go. You know, markets, as we know, they move well in advance of where the world is going… people should be quite patient with what they're investing in." Klein cautioned that "returns from capital markets are likely to be much more muted than they've been historically and yet volatility is going to be the same… 5 is the new 10."

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