Capital Allocators – Inside the Institutional Investment Industry Letitia Johnson - Concentrated and Long-Term at Amherst College (EP.382)
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Apr 29, 2024 
Letitia Johnson, the Chief Investment Officer of Amherst College, oversees a hefty $4 billion endowment with a unique investment philosophy. In their discussion, she shares her journey from Cambridge Associates to Amherst, emphasizing a concentrated, bottom-up approach for long-term gains. She delves into the nuances of portfolio construction, risk management, and the value of strong relationships with managers. Letitia also highlights the role of her supportive investment committee in navigating complex market dynamics and achieving impactful results.
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Varied Client Needs
- Client investment objectives significantly impact portfolio management.
- Asbestos trusts, with short-term payouts, require different strategies than endowments.
Manager Selection Impact
- Asset allocation is less variable across endowments, while manager selection differs greatly.
- Manager selection significantly impacts returns and even influences the asset allocation itself.
Effective Committees
- Effective investment committees define roles and responsibilities clearly.
- Consider the portfolio, history, and people involved to create robust, long-lasting solutions.