In Good Company with Nicolai Tangen HIGHLIGHTS: Robert Wallace
6 snips
Aug 29, 2025 Robert Wallace, CEO of Stanford Management Company, has a fascinating background as a former professional ballet dancer turned institutional investor. He discusses transforming Stanford's $40 billion endowment by consolidating external partnerships and adopting a selective investment strategy. The importance of passion over mere financial rewards shines through, as does the balance between risk and innovation in investment management. Wallace draws parallels between the dedication in ballet and the discipline required for successful investing, providing listeners with insightful perspectives on what makes great investors.
AI Snips
Chapters
Transcript
Episode notes
Dual Goals Drive Asset Allocation
- Stanford balances supporting current students and preserving purchasing power for future generations.
- That dual goal explains a 70% equity bias and targeting ~9% expected returns to cover 5% distributions plus education inflation.
From 300 Partners To Fewer Trusted Ones
- Wallace found Stanford overly diversified with 300 external partners managing a $20 billion portfolio when he arrived in 2015.
- He consolidated to a concentrated portfolio with fewer, higher-conviction partners to build trust and improve outcomes.
Hire For Curious Synthesizers
- Seek intellectual curiosity and the ability to combine quantitative and qualitative data when hiring investors.
- Prioritize candidates who can synthesize both data types to form clear investment judgments.