Capital Allocators – Inside the Institutional Investment Industry Scott Wilson – Concentrated Investing at Washington University-St. Louis (Capital Allocators, EP. 159)
Oct 5, 2020
Scott Wilson, Chief Investment Officer at Washington University-St. Louis, oversees a massive $10 billion endowment. He discusses his transition from Grinnell College’s unique investment approach to a concentrated strategy at Washington University. The conversation dives into navigating hedge funds, frontier markets, and the rigorous process of underwriting investment ideas. He shares personal insights, lessons learned from past mistakes, and the evolution of his investment philosophy, emphasizing collaboration within his team for optimal returns.
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Grinnell's Investment Philosophy
- Grinnell's investment approach prioritized finding high-quality companies and managers for concentrated, long-term investments.
- This concentrated approach, influenced by Buffett and Rosenfield, led to remarkable growth, turning $3 million into over $1 billion.
WashU Portfolio Transformation
- At WashU, Wilson transitioned the endowment from a diversified model to a concentrated one, similar to Grinnell's approach.
- He significantly reduced the number of partners and increased investments in individual securities.
Manager Selection Criteria
- Seek smaller, concentrated managers with long-term perspectives.
- Avoid systematic and macro strategies when building a concentrated portfolio.