Archive for the ‘NEWS AND COMMENTARY’ Category

Pay and Chief Investment Officers

08 / 23 / 2017
by Charles Skorina | Comments are closed

In this issue

  • Compensation and the Top 100+ Chief Investment Officers 
  • Fiddles and finance: Navigating an inefficient market
  • OCIOs and the costs of outsourcing
  • 6 charts with pay, performance, OCIOs

Download letter in PDF from www.charlesskorina.com

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Paying the Top Guns of Institutional Investing

Last month in Part One of this report we focused on relative performance.  We ranked 107 CIOs by trailing 5-year returns.

See: http://www.charlesskorina.com/?p=4828

Now, we focus on how much institutions pay these excellent people.

The bare comp numbers lead us to the tricky and perennial question of whether their pay is properly aligned to their performance (or vice-versa), and we offer some analysis and opinion from the point of view of working headhunters.

We also consider the cost of an OCIO firm relative to an in-house CIO-led investment office.

Now, on to the charts!



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Foundation Chief Investment Officers and the American dream

04 / 28 / 2017
by Charles Skorina | Comments are closed

Our March letter focuses on the venerable foundations of New York City and one of their most accomplished investment pros: Kim Y. Lew, chief investment officer of the Carnegie Corporation.

We have an in-depth conversation with Ms. Lew on her career in foundation investing and the future of women and minorities in her field.  We also look at pay and performance in the NYC foundations, with some illuminating charts for our quant readers.

Our friends at the Foundation Center tell us there are 243 American foundations with over $1 billion in assets and New York City harbors 31 of them, including some of the biggest and most storied.  The money wasn't all made there, but it tended to flow toward Manhattan because that's where the money-managers were.

According to David Swensen, "a deep appreciation of history" is essential to an investment professional.  Not just knowledge, mind you; but appreciation.  History may have temporarily put that money in their care, but markets and circumstance are always threatening to take it back.

Goethe's Faust got it right when he declaimed:

"That which thy fathers have bequeathed to thee, earn and become the possessor of it!"

Mr. Carnegie and Ms. Lew:

When Andrew Carnegie endowed the corporation with $125 million in 1911 – perhaps $3 billion in 2017 dollars – he founded the largest charitable entity of its day.  Along with the creation of the Rockefeller Foundation in 1913, this marked the beginning of the modern era of foundation philanthropy.

The Carnegie Corporation, headed by the eminent Vartan Gregorian, marked its centenary in 2011, the year Kim Lew became co-CIO, and it is still among the twenty-five largest foundations in the U.S. 

Despite continuing to give away at least $150 million every year (5% of net investment assets), the Corporation's endowment is larger today – in constant dollars – than it was in 1911.  This is due in part to the forbearance of America's taxpayers via the Internal Revenue Code, but also in large part to the skill of Ms. Lew, her colleagues, and their predecessors in maintaining impressive investment returns over the generations.



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A Total Enterprise Approach to Endowment Management

08 / 02 / 2016
by Charles Skorina | Comments are closed


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Cambridge Elevates Recently Appointed President to CEO

05 / 14 / 2016
by Charles Skorina | Comments are closed


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We Love Our Ranch, but It’s Time to Say Adios

04 / 28 / 2015
by Charles Skorina | Comments are closed

Thirteen years ago my wife and I bought an 80-acre ranch in Carmelo, Uruguay in South America.  

It's out in the country, but only about 60 miles north of the great city of Buenos Aries in neighboring Argentina.

The old stone farmhouse was quaint and traditional (i.e., a little run-down) but we fell in love with it.

Then we replaced the front door.  And then...well, by the time we had finished with construction six years later, we had ourselves a hacienda in the Spanish Mediterranean/Santa Barbara style, with a main house, guest house suites, caretaker's house, and assorted other structures.  We added a few horses, cows, chickens, dogs, cats and presto, our retirement ranch was complete.

It's a great getaway because it's summer down there when it's winter in North America.  The mild climate, safety and stability, and the friendly people all led us to buy in little Uruguay instead of one of its giant but turbulent neighbors: Brazil to the north, or Argentina to the south and west.

Uruguay is the safest country in South America.  Property rights are secure for both citizens and foreigners; and the weather is pretty much the same as southern California, except that the rains are regular and there is plenty of water.

It's a beautiful, peaceful place to relax when you really need to get away from it all, but it's a long commute from California.

My search work, which I love, does not leave us as much time as we would like for the long trip down and back.  It's a much easier trip for someone living on the east coast to connect to Montevideo or Buenos Aries from New York or Miami.

So, we've reluctantly decided it's time to sell.

The links below will take you to a lot of photographs of the house, grounds, and surrounding area which will give you a much better idea of what it's like.

Please feel free to contact me directly if you have questions, or you can call our broker, Patrick Archer.

See: https://www.facebook.com/EstanciaTierraSanta

See: http://estanciatierrasanta.com/

Patrick Archer: patrick@investba.com

USA:  1.800.251.2720  URY:  598.98.822.048  Skype: patrickarcher



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