Casey Whalen shares valuable lessons from David Swensen, focusing on alignment in investment programs, the importance of frameworks, private investments, and customized portfolios. The podcast delves into her impressive investing career, mentorship experiences, and strategic shifts in investment approaches, offering insights into navigating committee dynamics, managing relationships with investment managers, and generating alpha in investment strategies.
Importance of alignment in investment programs with all players involved.
Utilizing the right frameworks and understanding private investments are crucial for success.
Customizing portfolios for wealthy clients requires tailored approaches and effective communication.
Deep dives
Lessons Learned from David Swenson
Casey Whalen discusses the valuable lessons she learned from David Swenson, highlighting the importance of getting alignment with all players in an investment program. She emphasizes the significance of using the right frameworks, understanding private investments, and addressing the challenges of managing customized portfolios for affluent clients. These lessons underscore the critical role of strategic alignment and tailored approaches in successful investment management.
Transition to Investing and Career Development
Casey Whalen shares her journey into the investment world, rooted in a passion for math and a fortuitous encounter with David Swenson at Yale. Through her experiences at various prestigious institutions, including the New York Public Library, she navigated different roles and investments, ultimately finding her niche in global multi-asset class perspectives. Her career trajectory reflects a blend of educational backgrounds, professional mentorship, and a strategic approach to investment opportunities.
Building Alignment and Customized Approaches for Families
In discussing investment strategies with family offices, Casey Whalen emphasizes the importance of alignment and customization based on each family's unique goals and circumstances. By focusing on effective communication, authentic engagement, and iterative refinement based on family dynamics and attitudes towards risk and returns, she highlights the critical role of tailored asset allocations. The personalized approach aims to create frameworks that support rational decision-making and long-term wealth preservation.
Challenges in Instituting Decisions
Navigating decision-making within a high-powered committee posed significant challenges, with differing views on asset sourcing and allocation. Despite efforts to align decisions, institutional frameworks often clashed with individual investment philosophies, leading to prolonged approval processes. Some committee members favored selecting specific managers over asset allocation strategies, reflecting diverse investment approaches. The struggle to unify views highlighted the importance of establishing a coherent decision-making framework, underscoring the complexities of aligning diverse investment perspectives.
Managing Relationships with Managers
Developing long-term relationships with investment managers involves a nuanced approach to performance evaluation and potential changes. Communicating openly and directly about performance issues, supported by quantitative analysis, can facilitate constructive dialogues with managers. Through a balanced evaluation of qualitative and quantitative data, the team strives to uphold rigorous investment standards while adapting to evolving market dynamics. Balancing trust and performance metrics, the team navigates challenges of potentially replacing underperforming managers with diligence and respect for established relationships.
Casey Whalen has had a remarkable investing career starting at the Yale investments office, then Rockefeller University, the CIO of the New York Public Library, running three billion at Truuvo partners and now heading up Lazard’s family office partners. Casey and I talk about the many lessons she learned from David Swensen, and I especially liked her stress on getting alignment with all the players in an investment program. We also talk about the importance of the right frameworks, private investments, letting go of managers and dealing with customized portfolios for wealthy clients.
Please enjoy my interview with Casey Whalen.
Full Bio: Casey Whalen is the Managing Director, Head and CIO of Lazard Family Office Partners. She was previously CEO and CIO at Truvvo partners, a $3.8 B OCIO manager of family wealth and was CIO of the New York Public Library before that. She was Director of Public Investments for Rockefeller University and began her investment career at the Yale University Investments Office under David Swensen. She is a graduate of Yale University where she studied economics. She serves on the Investment Committee of the Rockefeller Family Fund.
NOTE: This podcast is for educational and entertainment purposes only. Anything said by the guests or host should not be construed as legal or investment advice. Thanks for listening.
Lazard Family Office Partners: https://www.lazardassetmanagement.com/us/en_us/references/lazard-family-office-partners
Joe Reilly is a family office consultant, and the host of the Private Capital Podcast as well as the Inheritance Podcast. FOLLOW JOE: https://twitter.com/joereillyjr WEBSITE: https://www.circulus.co/ INHERITANCE PODCAST: https://podcasts.apple.com/us/podcast/the-inheritance-podcast/id1644964
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