"2026 inflation is maybe a rod problem, but 2027 is the money problem": Elizabeth from Fortress

AI is going to split allocators in two. The ones who move in two days on a co-invest keep getting the call. The ones who cannot get cut out of the market. Elizabeth Burton calls it a K-shaped LP, and it is already happening. Recorded live at Global Alts New York, Shannon Murphy sits down with Justin Reed (Brown Brothers Harriman), Max Miller (CPP Investments), Elizabeth Burton (Fortress Investment Group), and Mario Therrien (La Caisse) for a real look at where institutional money is going next: inflation, AI dispersion, defense tech, private credit, hedge strategies, tax alpha, and the K-shape opening up between allocators. Burton makes the case that inflation is a 2027 money supply problem. Reed lays out independent returns and long duration Munis for taxable clients. Miller walks through CPP's concentrated AI book and why defense tech is next. Therrien explains why hedge strategies are back on a durable cycle. KEY TAKEAWAYS: - M2 is growing 7 percent annualized; 2027 is a money supply problem, not a tariff problem - AI creates a K-shaped LP: allocators who can act in two days win the co-invest - Concentration is the AI trade: OpenAI and Databricks anchor CPP's book; second-order bets sit in energy, data centers, drug discovery - 15 percent 15-year public equity returns are unlikely to repeat; assumptions now sit near 6.5 percent - Long-duration Munis lock in 7.5 percent tax-equivalent yield 15 years out - Hedge strategies are back on a durable cycle; dispersion between top and bottom quartile managers is widening - Anti-consensus opportunity: consumer, real estate debt, real estate equity - Tax alpha is the underrated 12 to 24 month move for taxable clients - Defense tech is the emerging concentrated winner CHAPTERS: 0:00 The K-shaped LP: allocators who move in two days 0:31 Meet the panel and why the tectonic plates in alts are shifting 1:34 Elizabeth Burton on why inflation is a 2027 money supply problem 3:12 Floating rate credit, gold, real assets: the infl