Andy Golden, President of Princeton's Investment Management Company, shares insights from his remarkable journey managing the university's endowment, which skyrocketed from $3 billion to $22.5 billion. He discusses strategic asset allocation, the pursuit of high capital returns, and the importance of team structure and talent development. Highlighting experiences from his unique career path, he reflects on decision-making processes and the dynamics of the investment team, all while weaving in personal anecdotes about leadership and the pressures of perfectionism.
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question_answer ANECDOTE
From Photographer to Financier
Andy Golden's career began unconventionally as a photographer pursuing artistic aspirations.
He transitioned into investment management after discovering an interest in organizational issues and economics.
insights INSIGHT
PRINCO's Governance
When Andy Golden arrived at PRINCO, investment decisions were made by a trustee committee, not professional staff.
This unusual structure stemmed from Princeton's long-standing success under a volunteer security selector.
volunteer_activism ADVICE
Empower and Hold Accountable
Empower investment staff fully and hold them accountable for decisions.
This provides true ownership and allows for long-term strategic thinking.
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In 'The Selfish Gene', Richard Dawkins presents a gene-centred view of evolution, arguing that genes are the primary units of selection and that they behave selfishly to ensure their own replication. The book explains concepts such as kin selection, inclusive fitness, and the evolutionarily stable strategy, highlighting how these mechanisms can lead to altruistic behaviors in organisms. Dawkins emphasizes that the 'selfishness' of genes is a metaphorical concept, describing their evolutionary consequences rather than any intentional behavior. The book has been influential in shaping modern evolutionary thought and remains relevant today[1][3][5].
After getting some great feedback from the replay of my conversation with Scott Malpass, I am going to repeat some gems from the past every few months. This week I picked out my conversation with Andy Golden, the venerable head of Princeton’s 24 billion dollar endowment. It’s another master class in endowment management from a seasoned veteran.
Andy Golden is the President of Princeton University’s Investment Management Company (PRINCO). Having grown from $3B at the time of his arrival in 1995 to $22.5B today, PRINCO has been among the highest performing endowments in the world. Andy came to PRINCO from Duke Management Company, where he was an Investment Director, and received his formative training in the business working for David Swensen at the Yale University Investments Office. Andy currently serves on the fund Advisory Boards of several well-known private equity and venture capital managers, including Bain Capital, General Catalyst Partners, and Greylock Partners. He was a founding member of the Investors’ Committee of the President’s Working Group on Financial Markets and serves as a Trustee of the Princeton Area Community Foundation and Rutgers Preparatory School. Andy holds a B.A. in Philosophy from Duke University and an M.P.P.M. from the Yale School of Management.
Our conversation discusses Princeton’s endowment two decades ago and today, including its strategic advantages as an institution, shifts in thinking about asset allocation, decision making, team development, and partnership with managers. Andy’s long tenure in his seat, insight, and wisdom provides a treasure trove of information about how a top endowment manager practices his craft, and his subtle wit always keeps things light.
Capital Allocators – Inside the Institutional Investment Industry 