E314: How Endowments Actually Think About Risk

Feb 27, 2026

Roger Vincent, founder of Summation Capital and former private equity lead at Cornell, brings decade-plus experience managing a multi-billion-dollar PE portfolio. He discusses why portfolio construction matters most. He explains how diversification in private equity boosts expected returns. He covers co-investing to cut fee drag and aligning carry with public benchmarks.

Ask episode

AI Snips

Chapters

Transcript

Episode notes

INSIGHT

Portfolio Construction Trumps Individual Bets

Portfolio construction is the primary driver of investment returns, not just individual deal selection.
Roger Vincent learned this managing Cornell's private equity book across cycles and emphasizes combining diverse strategies so the whole outperforms parts.

INSIGHT

Private Equity Needs Internal Diversification

Private equity spans venture, growth, and buyouts which offer very different return drivers and risks.
Roger Vincent argues assembling these sub-asset classes thoughtfully creates diversification benefits that raise expected returns.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

If private equity generates alpha, why are investors still paying for beta? In this episode, I sit down with Roger Vincent, Founder and CIO of Summation Capital, to break down portfolio construction, co-investing, and fee alignment in private equity. After more than a decade leading Cornell University’s multi-billion-dollar private equity portfolio, Roger shares why diversification in PE actually increases expected return, how elite endowments use co-investments to systematically reduce fee drag, and why most allocators are misaligned with the capital they steward. We also unpack Summation’s industry-first structure—charging carry only on alpha over a public benchmark and offsetting fees through a no-fee, no-carry co-investment program.

Highlights:

Why portfolio construction is the most underrated driver of returns
The false tradeoff between diversification and performance
Venture capital’s cyclicality vs. buyout stability
Why private equity beta is still expensive
Benchmarking PE against public markets for compensation alignment
Co-investments as a 600 bps fee arbitrage
The dangers of under-diversified direct investing
Behavioral finance and systematic co-investing
“Gather a bunch of hawks” — diversified specialization
Why double diversification destroys value
Paying carry only on alpha over a public benchmark

Guest Bio:

Roger Vincent is the Founder and CEO of Summation Capital. Previously, he spent 12 years at the Cornell University endowment, where he managed private equity investments through multiple market cycles and helped construct a highly diversified institutional portfolio.

Earlier in his career, Roger was a GP, giving him direct experience in underwriting, syndicating, and executing investments. His work focuses on alignment, portfolio construction, and bringing endowment-style investing to a broader set of asset owners.

Our Podcast now receives more than 300,000 downloads a month. Are you interested in sponsoring an episode? Please email David Weisburd at david@weisburdcapital.com.

We’d like to thank AlphaSense for sponsoring this episode!

Sponsor:

AlphaSense is the AI-powered market intelligence platform trusted by 85% of the S&P 100, helping investment professionals make faster, more confident, data-driven decisions. Built for hedge funds, asset allocators, private venture capital firms, and investment bankers, AlphaSense uses advanced AI and powerful search across premium proprietary content to surface the insights that matter most—before the market moves. Elevate your research and stay ahead of the competition. Visit https://www.alpha-sense.com/howiinvest/ to learn more.

Stay Connected with David Weisburd:

X/Twitter: @dweisburd LinkedIn: https://www.linkedin.com/in/dweisburd/ Weisburd Capital: https://www.weisburdcapital.com/

Stay Connected with Roger Vincent:

LinkedIn: https://www.linkedin.com/in/roger-vincent-1a6423/

Questions or topics you want us to discuss on How I Invest? Email us at david@weisburdcapital.com.

Disclaimer:

This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Capital. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions.

(0:00) Introduction (0:42) Importance of portfolio construction and role of specific assets (2:26) Public vs. private market exposure (5:10) Influence of Professor Steve Kaplan and allocator incentives (7:38) Benchmarking and co-investment strategies (12:39) Diversification strategies for endowments (18:00) Overview of Summation Capital and misconceptions about diversification (24:14) Summation Capital's unique approach to aligning incentives (25:49) Closing remarks