123: Oxford University Endowment Management: Purpose, Strategy and Implementation - Sandra Robertson, CEO & CIO of OUem
Jan 11, 2024
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Sandra Robertson, CEO & CIO of Oxford University Endowment Management, discusses managing an endowment, hiring criteria, risk management, and engaging university students in investments. She also explores the challenges faced by Oxford University and the importance of diversity in finance.
The next 10 years will witness incredible innovation in sectors such as biotech, AI, and software, along with significant changes in the investment industry.
Oxford University Endowment Management (OUEM) maintains an equity-focused portfolio, emphasizing absolute returns and a non-traditional asset allocation approach.
Deep dives
Exciting Innovations and Changing Investment Landscape
The speaker believes that the next 10 years will be marked by incredible innovation in various sectors such as biotech, AI, and software. The investment industry itself is also undergoing significant changes. There is an emphasis on the importance of staying financially sound and adapting to new ways of conducting business.
Oxford University's Endowment Management
The discussion shifts to Oxford University and its endowment management entity, Oxford University Endowment Management (OUEM). Sandra Robertson, the founding Chief Investment Officer and CEO of OUEM, sheds light on the investment approach adopted by the organization and some of the lessons learned over the years.
Investment Strategy and Diversification
OUEM maintains an equity-focused portfolio, with a range of 70-80% allocated to equities. The emphasis is on absolute returns and avoiding traditional asset allocation models. The team looks for talented investment managers and continuously expands their investment scope, including exploring opportunities in private equity and credit.
Challenges and Opportunities in the Investment Landscape
The investment environment presents both challenges and opportunities. Capital allocation trends highlight strong investor interest in multi-strategy hedge funds, AI, and private credit. However, there may be struggles in the UK market for small to mid-cap stocks and certain private equity funds. OUEM remains open to various opportunities, while staying nimble and flexible in a dynamic investment landscape.
What do JR Tolkien, Emma Watson, Oscar Wilde, Indira Gandhi, Margaret Thatcher, Niall Ferguson & Dr. Seuss have in common? They all attended Oxford University, which for nearly 1,000 years has been educating some of the brightest of British and global youth.
To have proved so permanent and excellent is testimony to many forces, both financial and educational.
In this episode we’re delighted to have its founding Chief Investment Officer and CEO, Sandra Robertson,whoexplains their approach, investment goals, managing a foundation, and what excites her about the investment landscape in 2024.
She discusses managing an endowment, how a new manager becomes included in the fund, and her thinking about risk.
She explains her approach to hiring, encouraging a culture which prioritises straightforward & honest communication, and the enduring magic of the internationally renowned Oxford ecosystem.