INVESTMENT PHILOSOPHY

The CIO believes that most markets are efficient; therefore, managers are more likely to add value in less efficient markets such as small cap and international equities, and alternative assets (real assets, private equity, and absolute return strategies). Despite the challenges involved with investing in these asset classes, they provide opportunities to generate higher than average returns in the future. Choosing among thousands of investment firms requires identifying the few managers who can truly add value: those who have a unique skill or edge, which may include sector or geographic specialists. In addition to manager selection, value added comes from thoughtful and value-conscious asset allocation combined with disciplined rebalancing. Establishing a successful governance and investment process is important to help make and stick with investment decisions that are at times contrarian and unconventional. A good process helps maintain these decisions, enabling the university to focus on long-term rather than short-term returns.