How I Invest with David Weisburd

E156: Inside the Mind of a $1.7B Endowment CIO w/Jim Bethea

Apr 18, 2025
Guest
Jim Bethea
Jim Bethea, Chief Investment Officer at the University of Iowa Foundation, manages a $1.7 billion endowment with just five staff members. He discusses the unique challenges of operating a lean team, sharing insights on asset allocation, manager selection, and the myths surrounding diversification. Jim explains why Iowa focuses on specialized asset classes, particularly the lower middle market in private equity. He offers candid advice on governance, decision-making dynamics, and when to re-evaluate investments, emphasizing the importance of building solid relationships in the investment community.
Ask episode
AI Snips
Chapters
Transcript
Episode notes
INSIGHT

Small Team, Big Flexibility

  • Managing a $1.7 billion endowment with a small, generalist team allows flexibility to pursue niche, high-performing funds.
  • However, limited resources and bandwidth challenge deep specialization in every asset class.
ADVICE

Learn Asset Classes Thoroughly

  • To evaluate a new asset class, first gather internal input and then consult with knowledgeable experts.
  • Leverage the openness of the LP community willing to share insights and honest assessments.
INSIGHT

Clear, Consistent Governance Roles

  • Effective governance requires clear, stable roles for committees and staff to prevent conflicting responsibilities.
  • Consistency across leadership changes ensures aligned decision-making and accountability.
Get the Snipd Podcast app to discover more snips from this episode
Get the app