Hello, I'm Ted Sides, and this is Capital Allocators.

This show is an open exploration of the people and process behind capital allocation.

Through conversations with leaders in the money game, we learn how these holders of the keys to the kingdom allocate their time and their capital.

You can keep up to date by visiting Capital Allocatorspodcast.com.

My guest on today's show is Dominic Garcia, the chief investment officer for the Public Employees Retirement Association of New Mexico,

a $16 billion pension system that serves over 90,000 members and provides $1.2 billion in annual benefits.

Dominic is a native of New Mexico, began his allocator career at New Mexico Para,

and returned to rejoin the system in 2017 as chief investment officer after nearly a decade at

SWIP, the state of Wisconsin Investment Board. Our conversation covers Dominic's path to the helm at Para, challenges of governance and

compensation in public pensions, addressing underfunding with variable liabilities, and his

risk-based investment approach that includes the separation of alpha and beta, overlays, and

the selection of alpha managers across public equities,

hedge funds, and private markets. Dominic has three times been named in the 40 under 40 by

industry publications, and you'll soon hear why. Please enjoy my conversation with Dominic Garcia.

Dominic, good to see you.

Yeah, good seeing you.

Thanks for having me on.

I really appreciate it.

Great.

Well, let's just dive in.

I mean, I know you're a New Mexican native.

So why don't you walk me through that early part of your career and how you got involved

...