By Margaret Chen, head of CA Capital ManagementCambridge Associates

Margaret Chen
Margaret Chen
Humans gauge time through memorable events. Using this metric, 2016 was a relatively uneventful year for endowments—yet investors’ desire and impatience for change deepened as the year progressed. 2017 will see continued questions about the “endowment model” as institutions search for return, consider how the political environment may alter the investment environment, and whether there is a place for active management. 

Institutions should focus on the nuts and bolts of long-term investing and “play their own game,” by reaffirming their investment goals and portfolio parameters (volatility, liquidity, time horizon). While low interest rates persist, a portfolio needs to look different than the index in order to achieve many institutions’ goal of generating a 5% real return or superior returns over an index benchmark. Using active management to generate alpha and embracing diversification to....

The content you are trying to view is restricted for
Foundation & Endowment Intelligence subscribers.

To continue reading, please log in using the login box in the upper right corner of this page, subscribe or take a free trial.

Subscribe

Start your Foundation & Endowment Intelligence service today for full access

Subscribe

Free Trial

Not ready to subscribe?

Register today for a free trial.

Free Trial


Latest Community

  • Jan 18, 2017 - Violet Baron

    Hedge Funds Remain Ugly: AM CheatSheet

    Hedge funds cannot seem to shake off the bad rap--but perhaps they deserve it.

  • Nov 29, 2016 - Violet Baron

    Castro Has Passed; Long Live Raul: AM CheatSheet

    The death of Cuban revolutionary and strongman Fidel Castro on Friday signaled the end of a long and isolationist era for the island nation… or maybe not.

  • Nov 22, 2016 - Violet Baron

    Farewell To The TPP: AM CheatSheet

    Often alluded to during his campaign, President-Elect Donald Trump has doubled down on his promise to do away with President Barack Obama’s carefully crafted Trans-Pacific Partnership.