Capital Allocators – Inside the Institutional Investment Industry Ana Marshall – Preparing for the New Environment at Hewlett (Capital Allocators, EP. 288)
Dec 19, 2022
Ana Marshall, CIO of The William and Flora Hewlett Foundation, manages a $13 billion portfolio and brings years of direct investing experience. She candidly discusses inflation, private equity dynamics, and liquidity management as she prepares for upcoming challenges. The conversation delves into the complexities of investing in China and emerging markets amid geopolitical tensions. Ana also shares insights on ESG considerations, the importance of proactive risk management, and her strategic vision for the next five years.
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Unlearning Artificial Rules
- Forget the last 14 years of investing rules because the near-zero cost of capital era was artificial.
- We're returning to a normalized economy with inflation and higher rates, similar to the 1990s.
Outdated Investment Rules
- Re-evaluate assumptions about deal valuations at any cost of capital.
- Consider FX risk and illiquidity premiums when making investment decisions.
Managing Frothy Private Markets
- Use secondaries actively to manage private market allocations in frothy markets.
- Construct secondary portfolios strategically, considering portfolio construction and buyer needs.