Universities are increasingly expensive to operate. The executives who manage school endowments, which help pay for most of those costs, experience the same challenges as other institutional investors. Managers in charge of assets totaling more than $174.4 billion spoke with Bloomberg Markets about lessons learned from the financial crisis and their long-term view on investing.
John AlexanderChief investment officer, Clemson University Foundation, with $700 million in assets under management
“Patience is very important. In today’s society we aren’t patient, possibly due to our technologically advanced environment. I try to offset this unnatural stimuli by picking hobbies that require patience, such as gardening or redoing a house. This training benefits me as an investment professional, especially in periods of market volatility.”
Andy GoldenPresident, Princeton University Investment Co., with $23.8 billion in assets under management
“Look beyond long term;Bet only where advantaged;Whole is more than sum.Preserve real value;Optimizing discomfort;Forever is far.”
Jay NamyetCIO, University of Oregon Foundation, with $900 million in assets under management
“Merely using an asset allocation model will not win the day. With so many bright, hardworking people with so much capital to allocate across so many asset classes, investing rather than allocating will likely win the day. Our mantra is ‘Special niches and special people’—go where the money isn’t and where the talent is thin, to generate the best risk-adjusted returns.”
Jim HilleCIO, Texas Christian University, with $1.6 billion in assets under management
“In the asset management business, you need discipline and a steady hand, and that feeds into having good judgment. It means not chasing what others are chasing, that you can go your own way.”
Catherine KeatingChief executive officer, Commonfund, an investment manager for endowments, including those at Trinity College and Bucknell University, with $25 billion in assets under management