MANAGER SELECTION

One of the primary ways in which value is added to the endowment investment portfolio is through investment manager selection. The selection process is designed to ensure that the portfolio has access to a broad array of the most skilled and highest quality investment managers. It is also an important risk management tool. In addition, managing risk through investment manager selection facilitates efficient portfolio management, reducing the number of providers to the minimum required to provide investment diversification and eliminating the need to over-diversify so as to minimize operational or business risk. The ultimate number of managers employed is predicated on the amount of assets individual investment managers can effectively manage, the prudent percentage of their total assets under management that would be represented by the overall portfolio, and the number of uncorrelated attractive managers that can be identified.