Capital Allocators – Inside the Institutional Investment Industry CIO Greatest Hits: Endowments – Andy Golden (Princo)
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Jul 21, 2025 Andy Golden, retired after thirty years at Princeton University Investment Management Company, shares his deep expertise in endowment strategies. He compares investment styles with Scott Wilson from Washington University, revealing insights into Princo’s renowned decision-making process. They discuss the evolution of investment governance, the significance of internal talent cultivation, and the balance between qualitative and quantitative data in investment strategies. Golden reflects on leadership lessons and the emotional complexities of managing investment teams, making for an insightful conversation.
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Managing Hedge Fund Size and Growth
- Princeton holds large, long-term relationships with around 15 independent return managers, embracing a barbell approach to size.
- Growth and evolution of managers require balancing scale benefits against risks of capacity and strategy changes.
Optimize Private Equity Fees
- Fee optimization matters more than minimization; fees should reflect value creation and alignment of appetites.
- Contracts should ensure managers are motivated by producing returns that make them 'silly rich' rather than just 'rich enough'.
Grow and Rotate Talent
- Grow your own talent to build long-term capabilities and preserve culture.
- Rotate junior team members across asset categories to diversify experience and avoid pigeonholing.
