Marc Boatwright

[Marc Boatwright @Zebra_XC]

@CIO_Baylor Thanks, Dave. Good quote. Curious to think about shorter duration returns (which can marginally increase spend rate) vs long-term returns (eg decades) which increase the corpus for future generations.

[Marc Boatwright @Zebra_XC]

@CIO_Baylor Then likely smaller managers where you can have influence? Lots more work to source and assess….More alpha if your selection process is effective…

[Marc Boatwright @Zebra_XC]

@CIO_Baylor All good points. But at a relatively small endowment like Baylor, do you have ability to drive terms? Seems like managers just give you the answer you want to hear, but the structures still allow them wide latitude to do what they want when it suits them.

[Marc Boatwright @Zebra_XC]

@CIO_Baylor @s2ref Underlying issue is PE fee structures. No incentive to cut under-performing assets early and crystallize losses. Fund managers keep the carry on the AUM and play the option value on the asset if it turns around.

[Marc Boatwright @Zebra_XC]

@CIO_Baylor Thanks, Dave. Good post. I’ve found my undergrad major in philosophy has been helpful in this regard. Constant questioning.

At our endowment, we recently considered a cultural mindset toward liquidity on the operating side of the university clashed with investment mindset…