We leverage academic research to employ an Endowment approach in the management of our clients’ long-term assets.
What is the Endowment model of investing? An endowment is a sum of principal invested by an organization which will provide stable and sustainable income for many years. Forward-thinking institutions with large sums of money (such as Harvard and Yale) have developed an investment strategy that enables them to generate a superior return and minimize risk, while providing a steady stream of income to support their organization’s objectives through various market cycles.
Rather than focusing on individual stocks or mutual funds, these organizations prioritize a broad palate of investment options as defined by asset classes.
While stocks and bonds have traditionally been part of individual client portfolios, the “democratization” of investing in the last few years has allowed access to investments previously inaccessible to high net-worth investors. These include investments in private real estate, private equity, and private credit; as well as absolute return strategies such as global macro, long/short trading, and event driven. These alternative asset classes provide diversification, which in turn reduces risk. We continually search for investments outside the traditional stock and bond markets, ones with the appropriate risk and return combination to help our clients meet their investment goals.