Robert Wallace: Managing Stanford’s Endowment, Balancing Risk, and Driving Innovation

In this interview, Nicolai Tangen speaks with Robert Wallace, the CEO of Stanford Management Company, about Stanford's investment philosophy, which balances supporting current students and scholars with preserving the endowment for future generations. Wallace details their investment strategy, influenced by David Swensen's first principles approach, emphasizing analytical rigor and careful partner selection. He discusses changes he implemented at Stanford, such as reducing diversification and focusing on high-conviction investments with fewer, trusted partners. Wallace also addresses challenges facing the endowment model, including high public equity valuations and the complexities of private asset investments, highlighting the importance of being in the top tier of private equity performance. The conversation explores the role of research universities in innovation, Stanford's support for the innovation ecosystem, and Wallace's unique background as a ballet dancer, which instilled discipline and a long-term perspective applicable to investment management.