Capital Allocators – Inside the Institutional Investment Industry [REPLAY] Ashby Monk – Investor Identity, Navigation, and Resilience (Capital Allocators, EP.312)
Jan 12, 2026
Dr. Ashby Monk, Executive and Research Director at Stanford's Long-Term Investing initiative, dives into the nuances of investor identity and its impact on returns. He explores the crucial role of technology in asset management, advocating for innovation to enhance decision-making. Monk also critiques current ESG ratings, urging a shift towards detailed data over summary scores. The discussion covers how understanding submergence—both drawdown and recovery—can improve long-term resilience in portfolios, ultimately steering institutional investors toward smarter strategies.
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Performance Is An Organizational Function
- Every asset owner’s performance is determined by four inputs: capital, people, process, and information.
- Asset allocation must align with those organizational capabilities, not be set in isolation.
Match Governance To Risk Appetite
- Align your governance budget with your risk budget so boards can properly oversee risky allocations.
- Give boards dashboards and time to monitor allocations so staff can be empowered to execute.
Tech Transforms Knowledge Into Navigation
- Technology and culture are in tension: culture preserves tacit human relationships while technology scales and streamlines information.
- Tech can transform returns by revealing what you own, the risks you hold, and enabling portfolio navigation.