Capital Allocators – Inside the Institutional Investment Industry Tom Lenehan – Taking the Helm at the Wallace Foundation (Capital Allocators, EP.246)
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Apr 18, 2022 
Tom Lenehan, the CIO at the Wallace Foundation, discusses his pivotal role in guiding $2 billion to foster equity in education. He shares his transition from deputy CIO to CIO and the challenges of managing during COVID. The conversation delves into asset allocation priorities, including his perspectives on China, inflation, and the balance between ethical investment and profitability. Tom reflects on navigating team dynamics and governance while preparing for future risks, blending personal insights with strategic investment philosophy.
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Diversification Saves Wallace
- Tom Lenehan's predecessor at Wallace Foundation divested founder stock and diversified the portfolio.
- This saved the foundation from potential bankruptcy when Reader's Digest went bankrupt.
Team Building
- Prioritize getting the right team in place before making significant portfolio changes.
- Focus on people with strong skill sets, work ethic, good personalities, and high integrity.
Increased Private Investments
- Tom Lenehan increased Wallace Foundation's private investment allocation from 25% to 35%.
- They successfully deployed capital during a favorable market environment, capitalizing on lower purchase prices in healthcare and tech.