Capital Allocators – Inside the Institutional Investment Industry Tim Recker - Concentration at the James Irvine Foundation (Capital Allocators, EP.100)
May 20, 2019
Tim Recker, CIO of the James Irvine Foundation, has an impressive background in private equity and alternative investments. He discusses his transition from GE to various institutional roles, shedding light on the importance of governance and managing concentrated portfolios. Tim shares insights on co-investment strategies, the balance of flexibility and team structure, and the significance of due diligence. He also delves into hedge funds, the role of real estate and fixed income in portfolios, and strategies to prepare for market downturns.
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Good Governance
- Prioritize good governance, including a clear understanding of accountability and long-term perspective.
- Endowments and foundations tend to have better governance than other institutions.
Venture Allocation
- Irvine Foundation's 26% venture allocation, a high concentration, requires strong governance.
- Tim Recker separates institutional tilt (venture) from the team's selection of specific managers.
Concentration and Manager Selection
- Irvine's smaller size and governance allow pursuing smaller, niche managers and concentrated portfolios.
- Tim Recker aims to concentrate 90% of assets with 25 best-in-class managers.