PCR’s Rob Fiore on Alternative Investments, Yoga and Mixed Martial Arts

Managed futures were (and still are) all the rage in the alternative investment sector. Any other trends that you are seeing?

We know that multi-currency strategies are key. It's necessary for advisors and clients to have the ability to check that box, and it will be increasingly so as time goes by, but we aren't seeing the adoption of such strategies yet. It's still too early.

You said alternative investments are more likely to be seen in sophisticated portfolios. Are they beginning to move downstream?

Alternative investments are moving downstream. We have $20 billion in assets in the alternative space, and we're seeing as much as 40% to 60% of the portfolio in alternative assets.

Who is your main competitor?

Our main competitor is the status quo. Other companies are using software, spreadsheets and people to handle their alternative investment business. But it's a secondary business for these companies; it's not what they specialize in. Unseating software and internal processes takes a long time, and you have to be patient. But we are seeing more advisors recognize that outsourcing is the way to go. 

You often employ a yoga and mixed martial arts metaphor when describing the company. What gives?

Yoga and MMA require an understanding of one's strengths and weaknesses. In business, inefficiency, stagnant growth and low profitability can be improved the same way a yoga participant enhances his flexibility and an MMA fighter improves his offensive skills. Repetition and a varied skill set—in the case of business, improving a company's efficiencies and building client relationships—adapts the body to conquer those challenges the next time they are faced with them. These are the exact methods that have helped PCR excel and continue to rapidly grow.