In this podcast, the CIO of Caltech's endowment shares insights into their investment strategy and portfolio management, reflecting on experiences through various financial crises. Caltech takes a conservative stance, focusing on risk management and stability rather than chasing high returns, especially given their significant payout ratio and dependence on the endowment for funding operations. The CIO underscores the necessity of thorough due diligence, careful manager selection, and a collaborative, adaptable approach to investing across a range of asset classes, including public and private equities, real assets, and alternative investments. They also discuss the advantages of evergreen fund structures and the hurdles of active management in a market largely influenced by a few large-cap stocks.
