Let the College Fund Velociraptors Roam Free
Endowments should put the bulk of their assets in passive investments, and then hire a small number of nimble and aggressive active managers.
Not a benchmark-hugger.
Photographer: YOSHIKAZU TSUNO/AFP/Getty Images
To get John Authers' newsletter delivered directly to your inbox, sign up here.
It’s taken a decade since the Global Financial Crisis, but maybe we are on the verge of realizing that investment has been made far too complicated. An important new piece by Richard Ennis, former editor of the Financial Analysts Journal, inveighs against the Failure of the Standard Model of Institutional Investment and argues instead that big university endowments, and the many other institutional investors who follow them, should opt for something simpler.