Capital Allocators – Inside the Institutional Investment Industry Andrew Golden – Navigating Princeton's Endowment Through (Another) Crisis (Capital Allocators, EP.133)
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Apr 23, 2020 Andrew Golden, President of PRINCO, has expertly managed Princeton's $25 billion endowment since 1995. He discusses the critical strategies for navigating financial crises, focusing on communication and decision-making in remote environments. Golden emphasizes the importance of liquidity management and adaptive risk strategies amidst market volatility. He also shares insights on developing talent virtually to enhance inclusivity in investment management, underscoring the value of pre-existing partnerships during challenging times.
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Zoom Fatigue
- Zoom meetings can be more tiring than in-person meetings due to the intensity of constant eye contact.
- This "isometric staring" creates a sense of obligation to show attentiveness, increasing fatigue.
Playing Offense in Volatile Markets
- Exploit market overreactions by making bets when opportunities are clear (e.g., when things are "out of whack").
- Build up liquidity to allow for offensive plays during market dislocations.
Pre-Crisis Positioning
- PRINCO marginally increased liquidity before the crisis, not to dampen returns but to enable offensive plays.
- They also had a significant bet against the U.S. stock market, which proved helpful in March.