Capital Allocators – Inside the Institutional Investment Industry [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13)
Apr 23, 2020
Andy Golden, President of Princeton's Investment Management Company, shares insights from his remarkable journey managing the university's endowment, which skyrocketed from $3 billion to $22.5 billion. He discusses strategic asset allocation, the pursuit of high capital returns, and the importance of team structure and talent development. Highlighting experiences from his unique career path, he reflects on decision-making processes and the dynamics of the investment team, all while weaving in personal anecdotes about leadership and the pressures of perfectionism.
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Concentrated Domestic Equity
- PRINCO allocates only 10% to domestic equities, 4% of which is concentrated with one biotech manager.
- This concentrated approach reflects the "one team, one dream" philosophy, prioritizing overall portfolio performance.
Bottom-Up Asset Allocation
- PRINCO's asset allocation process is evolving from a two-bucket approach to a bottom-up manager selection model.
- This prioritizes investing with high-conviction managers regardless of traditional asset class boundaries.
Independent Return Strategy
- PRINCO allocates 25% to independent return (hedge funds) with a barbell approach.
- Some managers receive large allocations based on long-term relationships and proven track records.
