Rebuilding the NYU Endowment – Michelle Knudsen (EP.513)

NYU’s $8 billion endowment is undergoing a fundamental transformation from a conservative, bottom-up strategy to a growth-oriented portfolio under the leadership of Chief Investment Officer Michelle Knudsen. This shift involves diversifying into quantitative exposure, macro hedge fund strategies, and venture capital to better capture long-term equity market returns. Governance has been restructured to empower the investment team in manager selection, while the investment committee focuses on high-level risk frameworks and strategic oversight. Success relies on a data-driven diligence process that blends historical performance analysis with forward-looking qualitative assessments. To support this evolution, the office has rebuilt its team with a focus on continuous improvement and proactive problem-solving, ensuring the portfolio remains robust through rigorous stress testing and a disciplined, long-term investment horizon that prioritizes liquidity and strategic flexibility.