Failure-Tolerant Innovation: Paul Greff's Blueprint for Transforming a $130B Ohio Public Employees Retirement System Pension Fund

How do you transform a $130 billion pension fund? Start by making it safe to fail. Angelo Calvello, host of Institutional Edge, interviews Paul Greff, Chief Investment Officer of Ohio Public Employees Retirement System (OPERS) since 2018, about his comprehensive transformation of the $130 billion pension fund. Greff describes building a "failure-tolerant" culture of open innovation that encourages intelligent risk-taking, breaks down silos, and surfaces problems early. From 2018 to 2023, he restructured the portfolio by unwinding the 10% hedge fund allocation, moving from 35% to 55% internally managed assets, achieving a measurable reduction of fees, and consolidating multiple risk systems into one unified platform accessible to all staff. Paul Greff is the Chief Investment Officer at Ohio Public Employees Retirement System (OPERS), a position he has held since 2018. Before becoming CIO, Paul served as Deputy CIO for two years and spent seven years as Head of Global Bonds at OPERS. Prior to joining OPERS, he was Senior Managing Director and Head of Global Fixed Income at State Street Global Advisors. With 36 years of institutional investing experience across public and private markets, Paul brings deep expertise in derivatives, fixed income, and multi-asset class portfolio management. He is a CFA charterholder. In This Episode: (00:00) Introduction of Paul Greff, CIO of OPERS, discussion of transformation journey (04:01) Building a culture of open innovation and failure-tolerant environment (06:24) Breaking down asset class silos through collaboration and communication (09:30) Creating quantitative research group to enhance internal capabilities (12:51) Major portfolio restructuring: unwinding hedge funds, bringing assets in-house (16:45) Seven-year risk system consolidation creates unified platform for staff (26:17) Building out office of CIO, exploring new strategies and opportunistic approaches (31:24) Total portfolio approach discussion, philosophical alignment with OPERS strategy Like, subscribe, and share this episode with someone who might be interested, and please take time to leave us a review! 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. 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:Paul Greff LinkedIn: https://www.linkedin.com/in/paul-greff-cfa/OPERS (Ohio Public Employees Retirement System): www.opers.orgState Street Global Advisors (Paul's former employer - www.ssga.com)Email Angelo: [email protected] Julie: [email protected] Pens...