Capital Allocators – Inside the Institutional Investment Industry [REPLAY] Mark Baumgartner – Luck, Risk and Uncertainty as CIO for the Institute for Advanced Study (Capital Allocators, EP.77)
Apr 2, 2020
Mark Baumgartner, CIO of the Institute for Advanced Study, oversees a $1 billion portfolio aiming for median returns with low risk. He shares his unconventional journey from aspiring rocket scientist to investment management, highlighting how luck and education shaped his career. The discussion dives into risk management strategies, manager selection nuances, and the importance of a disciplined approach during market crises. Baumgartner also reflects on the unique mission of the Institute and the role of curiosity in fostering knowledge and creativity.
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Career Path Guided by Luck
- Mark Baumgartner's career path was heavily influenced by luck, starting with a recession that prompted him to pursue graduate studies.
- At Princeton, he shifted from aerospace engineering to public policy, blending quantitative and qualitative approaches to uncertainty.
Entry into Management Consulting
- After leaving academia, Baumgartner joined a management consulting firm led by his mentor, Hamilton Helmer.
- There, he gained experience in business strategy during the Silicon Valley boom of the late 1990s.
Early Hedge Fund Experience
- Baumgartner's early hedge fund experience felt less institutionalized, focusing on picking winners and losers like in consulting.
- He recalls being in early Netflix boardrooms and witnessing the company's evolution firsthand.
