The Skorina · PDF fileThe Skorina Letter News, Interviews ... Morgan Creek Capital Mgmt Mark...
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The Skorina Letter News, Interviews, Research for Institutional and Family Office Investors ● Retained Executive Search ● We recruit chief investment officers and senior asset managers for endowments, foundations, family offices and institutional investment firms -------------------------------------------------- [email protected] http://www.charlesskorina.com/ Office: 415-391-3431 In this issue • Our 2017 OCIO List: Outsourced AUM up over 21% • Harvard lags in early-innings endowment returns • President needed for West Coast asset manager • A short guide to OCIO happiness Download letter in PDF from -------------------------------------------------- Outsourced assets under management up over 21 percent year-over-year in Skorina’s latest OCIO list! With 77 firms heard from, we’re now reporting $1.7 Trillion in full-discretion assets under management by outsourced chief investment officer firms. That’s a year-over-year jump of almost $364 billion – or a little over twenty one percent – since September 2016! See last year’s report, here: http://www.charlesskorina.com/?p=3916 The number of reported RFPs is also rising as institutions seek better returns and broader investment options. OCIO providers, in turn, are beefing up their resources to meet the needs of current and prospective clients. For example: Alan Biller, Hirtle Callaghan, Goldman Sachs, and Cambridge Associates, among others, all continue to add headcount and expand capabilities.
Transcript of The Skorina · PDF fileThe Skorina Letter News, Interviews ... Morgan Creek Capital Mgmt Mark...
The Skorina Letter News, Interviews, Research for Institutional and Family Office Investors
● Retained Executive Search ● We recruit chief investment officers and senior asset managers for
endowments, foundations, family offices and institutional investment firms
-------------------------------------------------- [email protected] http://www.charlesskorina.com/
Office: 415-391-3431
In this issue
• Our 2017 OCIO List: Outsourced AUM up over 21% • Harvard lags in early-innings endowment returns • President needed for West Coast asset manager • A short guide to OCIO happiness
Download letter in PDF from --------------------------------------------------
Outsourced assets under management up over 21 percent year-over-year in Skorina’s latest OCIO list!
With 77 firms heard from, we’re now reporting $1.7 Trillion in full-discretion assets under management by outsourced chief investment officer firms. That’s a year-over-year jump of almost $364 billion – or a little over twenty one percent – since September 2016! See last year’s report, here: http://www.charlesskorina.com/?p=3916 The number of reported RFPs is also rising as institutions seek better returns and broader investment options. OCIO providers, in turn, are beefing up their resources to meet the needs of current and prospective clients. For example: Alan Biller, Hirtle Callaghan, Goldman Sachs, and Cambridge Associates, among others, all continue to add headcount and expand capabilities.
Hirtle Callaghan is hiring senior client-centric investment professionals, Goldman and Cambridge continue to mobilize and deploy their deep internal resources, and Alan Biller continues to build for the future and consolidate their commanding position in the multi-employer pension space.
Where are CIOs to come from?
As a search-committee chairman remarked to me recently, there are very few Joe Montanas to be had among nonprofit CIOs. The accomplished stars and no-brainer candidates are mostly immovable. That’s obviously true among the mega-endowments. Seth Alexander, Andrew Golden, and Scott Malpass are happy where they are. Recent hires like Narv Narvekar and Britt Harris were well-known to Harvard and UTIMCO, respectively, for years. And in each case that is probably the only move either would have considered. But much the same problem exists at smaller funds. Proven leaders are already well-paid; and/or they’re closer to the end than the beginning of their careers. Paula Volent, for instance, has done a stellar job at the $1.3 billion AUM Bowdoin College endowment, and is still relatively young. But her board is – wisely – taking very good care of her. It’s unlikely that another fund that size could match what’s she’s making. See: https://bowdoinorient.com/2017/09/15/volents-pay-jumps-930k/ Talent is still available at a reasonable price, lots of it. But you have to look deeper and harder, and may need to move down to next-generation leaders who don’t have the long track-records that reassure nervous, picky boards. Next-gen candidates bring less hands-on experience and must survive harder scrutiny. Big Fortune 500 firms like GE spend years and millions of dollars training their leaders for top jobs. Nonprofits don’t have the time or budget for that. New CIOs must show up full-fledged ready to hit the ground running.
OCIO firms can offer the proven performance of those unobtainable super-stars at a reasonable price. And they can replicate the entire investment office with the process and structure to cope with the complexity of modern portfolios and mounting operational/regulatory burdens. An OCIO isn’t necessarily the best choice for your institution, but it’s an attractive proposition for many. That’s why their AUM is still growing at that blistering pace.
Stay tuned for Part 2: In our next newsletter, we will have more to say about the pros and cons of outsourcing, plus an extended analysis of endowment investment management costs, and conversations with some prominent outsourcing leaders. For now, let’s just look at how the sector is doing and who’s available to take your call per our latest research. On to the 2017 edition of Skorina’s Ultimate Outsourcer List!
Skorina’s OCIO list 77 firms
September 2017 edition (most firms as of 6-30-17)
Agility (Perella Weinberg) Chris Bittman, CIO
Denver, CO (303) 813-7910
$8bn (5-31-17) [email protected]
Alan Biller and Associates Alan D. Biller, CEO & Sr
Consultant
Menlo Park, CA (650) 328-7283
$88bn total
$37.8bn discretionary (6-30-17)
Angeles Investment Advisors Leslie B. Kautz, Principal Tatijana S. Janko, Director
Santa Monica, CA (310) 393-6300 (310) 463-7964
$26bn advisory
$3.0bn discretionary (6/30/17) [email protected] [email protected]
AON Hewitt Steve Cummings, President
Chicago, IL (847) 442-0064
$104bn discretionary (3-31-17) [email protected]
Appomattox Advisory Drianne Benner, MD
Institutional Marketing
New York, NY (212) 546-6247
$1.5bn discretionary (5-31-17) [email protected]
Aptitude Investment
Management (ex Federal Way)
Jeff Klein, CEO & Deputy CIO Michael Hillman, Head of IR
Seattle, WA (206) 788-8808
$5.6bn total
$5.3bn discretionary (6-30-17) [email protected]
Artemis Wealth Advisors
Peter M. Rup, Founder & CIO
New York, NY
(212) 838-9000
$825mm total
$625mm discretionary (3-31-17)
Arthur J. Gallagher & Co.
Michael W. Johnson, Area
President Institutional Investment
& Fiduciary Services
Washington, DC
(202) 898-2270
$53.6bn advisory
$2.6bn discretionary (6-30-17) [email protected]
Athena Capital Advisors Lisette Cooper, MP/CIO
Lincoln, MA (781) 274-9300
$5.498bn total
$4.884bn discretionary (6/30/17) [email protected]
Balentine M. Rob Ragsdale, Partner
Atlanta, GA (404) 537-4800
$2.6bn (6-30-17) [email protected]
BlackRock Edward Ng, MD, Head of US
OCIO/LDI/Portfolio Mgmt
New York, NY (212) 810-5300
$122bn discretionary (6/30/17)
BNY Mellon Investment
Management Andrew D. Wozniak, Head of
Fiduciary Management
New York, NY (412) 236-7940
$9.5bn total
$8.2bn discretionary (6/30/17) [email protected]
Callan Associates Jim Callahan, Executive VP
San Francisco, CA (415) 974-5060
$2tn advisory
$24.1bn discretionary (6-30-17) [email protected]
Cambridge Associates Deirdre Nectow, Mgn Director
Boston, MA (617) 457-1781
$147.9bn advisory
$21.6bn discretionary (6-30-17)
Canterbury Consulting Poorvi Parekh, Director of
Outsourced Investments
Newport Beach, CA (949) 718-2224
$15.07bn advisory
$2.41bn discretionary (6-30-17) [email protected]
Clearbrook Global Advisors Elliott Wislar, CEO
Gregg Sibert, Chief Mrktg
Officer
New York, NY (212) 683-6686
$28bn advisory
$825mm discretionary (3-31-17) [email protected]
Commonfund Tim Yates, Mgn Dir, Head
Strategic Solutions
Wilton, CT (203) 563 -5254
$24bn discretionary (6-30-17)
CornerStone Partners David Russell, Sr Mgn Dir
Charlottesville, VA
(434) 295-3947 $10bn (6-30-17) [email protected]
Covariance Capital
Management (TIAA-CREF) Cara Howe, Sr Dir bus dev
Chris Carabell, MD, head of bus
dev
Houston, TX (713) 770-2042 (713) 770-2072
$2.4bn discretionary (6/30/17) [email protected] [email protected]
DiMeo Schneider & Assoc. Robert (Bob) A. DiMeo, MD &
Co-Founder
Jon Fellows, Partner & Chair,
Discretionary Committee
Chicago, IL (312) 853-1000
$67.6bn advisory
$2.8bn discretionary (5-31-17) [email protected] [email protected]
Disciplina Matthew W. Wright, President
& CIO
Nashville, TN (615) 490-6007
AUM not available [email protected]
Discretionary Management
Services (DeMarche Assoc.) Thomas C. Woolwine, President
Overland Park, KS (913) 981-1345
$22.7bn advisory
$295mm discretionary (3-31-17) [email protected]
Edgehill Endowment Partners Ellen Shuman, Mgn Partner Nina F. Scherago, Mgn Partner
New Haven, CT (203) 654-3552 (203) 654-3551
$670mm discretionary (6-30-17) [email protected] [email protected]
Fidelity Institutional Asset
Management (ex Pyramis)
Jim Zadrozny, SVP institutional
sales
Smithfield, RI (401) 292-4760
401-209-0523 cell
$690bn global
$18bn discretionary (6-30-17) [email protected]
Fund Evaluation Group Christina Drake, Sr Client
Development Associate
Cincinnati, OH (513) 592-2107
$54bn advisory
$6.9bn discretionary (6-30-17) [email protected]
Gerber Taylor
Matthew Kinnear, Client dev Memphis, TN
(901) 526-9750
$7.8bn advisory
$5.3bn discretionary (6-30-17)
Glenmede
Gordon Fowler, Jr., President,
CEO & CIO
Philadelphia, PA (215) 419-6640
$37.2bn total
$17.8bn institutional discretion (6-30-17) [email protected]
Global Endowment Mgmt Stephanie Lynch, Partner
Charlotte, NC (704) 333-8282
$8.4bn (6/30/17) [email protected]
Goldman Sachs Kane Brenan, Mgn Director
New York, NY (212) 855-9851
$126.4bn discretionary (6/30/17) [email protected]
Hall Capital Partners Sarah Stein, Managing Partner
Alison Bowe Diessner, Principal
San Francisco, CA (415) 277-2634
(415) 217-2494
$31bn
$7.1bn discretionary (6-30-17) [email protected]
Highland Associates Kelly Campbell, Mrktg Assoc
Birmingham, AL (205) 939-8307
$22bn total
$10.5bn discretionary (6/30/17)
HighVista Andre Perold, CIO
Boston, MA (617) 406-6510
$3.1bn discretionary (6-30-17) [email protected]
Hirtle Callaghan Erica Evans, Head of Client
Engagement
W. Conshohocken, PA (610) 943-4100
$23bn (6-30-17) [email protected]
Investment Performance
Services David A. Russell, Sr Investment
Strategist
Newtown, PA Savannah, GA (215) 867-2330
$39bn advisory
$10bn discretionary (3-31-17) [email protected]
Investure Ellen Meyer, Client Team Dir
Charlottesville, VA
(434) 220-0280 $13.5bn discretionary (7-31-17) [email protected]
J.P. Morgan Asset & Wealth
Management Monica Issar, Head Endowments
& Foundations Group
New York, NY (212) 464-2852
$2.6 trillion
$27.3bn discretionary (6/30/17) [email protected]
Lowe, Brockenbrough & Co.
(Bespoke Strategies) Christopher Dion, MD & CIO
Richmond, VA (804) 287-2744
$2.3bn total
$1.0bn institutional discretion (6-30-17) [email protected]
Makena Bill Miller, Partner & COO
Menlo Park, CA (650) 926-0510
$19bn (6-30-17) [email protected]
Mangham Associates Elizabeth Aycock, Director
Charlottesville, VA (434) 973-2223
$1.5bn discretionary (6-30-17) [email protected]
Marquette Associates Doug Oest, Mgn Partner
Chicago, IL (312) 527-5500
$156bn advisory
$6.9bn discretionary (6-30-17)
Meketa Fiduciary Mgmt
Chaunice Peebles, Relationship
Manager
San Diego, CA
(760) 795-3455
$550bn advisory
$6.4bn discretionary (6-30-17)
Mercer Rich Joseph, US delegated
solutions leader
Boston, MA (617) 747-9540
$10.2Trillion advisory
$191bn delegated global AUM (6-30-17) [email protected]
Mill Creek Capital Advisors Josh Gross, President
Conshohocken, PA (610) 941-7714
$5.6bn total
$5.1bn discretionary (6/30/17) [email protected]
Morgan Creek Capital Mgmt Mark Yusko, CEO & CIO
Chapel Hill, NC (919) 933-4004
$2.3bn discretionary (6-30-17) [email protected]
Morgan Stanley/Graystone Robert Mandel, Exec Dir Suzanne Lindquist, Exec Dir
New York, NY (914) 225-5420 (212) 296-1064
$23.2bn OCIO discretionary (6-30-17) [email protected] [email protected]
NEPC Steve F. Charlton, Director
consulting services
Boston, MA (617) 374-1300
$15.3bn discretionary (6-30-17) [email protected]
New Providence Asset Mgmt Lance Odden, Mgn Director
New York, NY (646) 292-1200
$3bn discretionary (6-30-17) [email protected]
Northern Trust Margret Duvall, Sr Solutions
Strategist
Chicago, IL (312) 444-7336
$123bn
$64.9bn discretionary (6-30-17) [email protected]
Okabena Investment Services Deborah D. Weiss, Client
Relationship Manager
Minneapolis, MN (612) 217-6225
$1.5bn discretionary (6-30-17) [email protected]
Partners Capital Paul Dimitruk, Chair, Partner Brendan Corcoran, Partner
Boston, MA & UK (617) 292-2575 (617) 330-7679
$20.7bn total (6-30-17) [email protected] [email protected]
Pavilion Advisory Group Inc.
/U.S. operations (bought Slocum)
Deanna Allen, VP Mrktg
Chicago, IL
(312) 798-3200
Minneapolis, MN
(612) 338-7020
$226bn advisory
$2.3bn discretionary (12-31-16)
Pentegra Investors Inc. Sarah Coxe Lange, MD,
Institutional Client Solutions
White Plains, NY (914) 821-9563
$11bn total discretionary (6-30-17) [email protected]
Permanens Capital Gary Yannazzo, CFO
New York, NY (212) 993-7440
$2.6bn discretionary (6-30-17) [email protected]
PFM Asset Mgmt
John Spagnola, Mgn Dir
Philadelphia, PA
(215) 567-6100
$8.7bn advisory
$9.4 discretionary (6-30-17)
PNC Bank
Deborah A. Kolsovsky, EVP
& MD Institutional Advisory
Solutions
Scranton, PA (570) 961-6868
$22bn discretionary AUM (6-30-17) [email protected]
Regions Asset Mgmt S. Alan McKnight, Jr., CIO
Birmingham, AL (205) 264-6621
$90.9 advisory
$30.76bn discretionary (6/30/17) [email protected]
Rocaton Investment Advisors John Hartman, Mgn Director
Norwalk, CT (203) 621-1717
$532bn advisory
$10.2bn discretionary (6-30-17) [email protected]
Rockefeller & Co. Patricia Verrochi, Mgn Dir
New York, NY (212) 549-5314
$26.4bn total
$10.9bn discretionary (6/30/17) [email protected]
Roundtable Investment
Partners (merged with Post Rock)
Geoffrey T. Boisi, Chairman &
CEO
New York, NY (212) 488-4700
$4.5bn total (6-30-17)
Russell Investments Eric Macy, Mgn Dir
New York, NY (212) 702-7941
$2.3 trillion advisory (12-31-16) $123.7bn OCIO global institutional (3/31/17) $48.6bn OCIO US institutional (3/31/17) [email protected]
Segal Marco Advisors Ryan M. Hanna, SVP, Head
Global Portfolio Solutions
Chicago, IL (312) 612-8469
$9.1bn discretionary (6-30-17) [email protected] Segal Marco Advisors
SEI Institutional Group Michael Cagnina, VP, MD
Oaks, PA (610) 676-1496
$88.5bn discretionary (6/30/17)
Seven Bridges Advisors M. Ram Lee, Partner
New York, NY (212) 490-6320
$4.25bn total (6-30-17) [email protected]
Spider Management Co. Rob Blandford, President, CIO
Richmond, VA (804) 289-6010
$4.3bn discretionary (6-30-17) [email protected]
Spruceview Capital Partners John A. Garibaldi, Mgn Partner
New York, NY (212) 485-8617
AUM not available [email protected]
State Street Global Advisors Keith Malcher, MD, Investment
Solutions Group - OCIO
Stamford, CT (203) 708-2501
$83.9bn discretionary (6/30/17) [email protected]
Strategic Investment Group Nikki Kraus, MD, Client dev
Arlington, VA (703) 243-4433
$34.7bn total
$25.1bn discretionary (6-30-17) [email protected]
Summit Solutions (Summit
Strategies Group) Don Wehrmann, Principal
Saint Louis, MO (314) 727-7211
$3.3bn OCIO assets (5-31-17) [email protected]
SunTrust Bank Elizabeth Cabell Jennings, SVP, Dir Institutional Investments
Foundations, Endowments
Specialty Practice
Atlanta, GA
(404) 813-1538
Richmond, VA
(804) 782-7016
$9.3bn discretionary (6-30-17)
The Investment Fund for
Foundations (TIFF) Pat Torrey, Mgn Director
Radnor, PA (610) 684-8201
$9.2bn discretionary (6/30/17) [email protected]
UBS AG Charles Service, MD,
Investment Solutions
Chicago, IL (312) 525-7016
$13bn OCIO mandates (6-30-17) [email protected]
US Trust Bank of America Bernard Reidy, National
Philanthropic Sales Executive
New York, NY (646) 855-5647
$30.9bn discretionary (6-30-17) [email protected]
Vanguard Kevin T. Jestice, Principal
Malvern, PA (610) 669-6449
$36bn discretionary (5-31-17) [email protected]
Verger Capital Management Patrick Decker, Client
Development, MD Wesley Carroccio, Client
Development, Director
Winston-Salem, NC (336) 758-4129
$1.6bn discretionary (6-30-17)
Verus Investments Shelly J. Heier, Pres & COO
Seattle, WA (206) 622-3700
$340bn advisory
$2.3bn discretionary (6-30-17)
Wells Fargo - Institutional
Asset Advisors Rob Kent, VP national sales dir
Overland Park, KS (913) 234-2929
$23.5bn discretionary (3/31/17) [email protected]
Willis Towers Watson Chicago, IL
(312) 525-2436
$88bn discretionary (6/30/17)
Kemp Ross, Global Head of
Delegated
Debra Woida, Head, Delegated
Investment Services, Americas Pieter Steyn, EMEA head
Delegated Investment Services
(312) 525-2336
44 (0) 207 170 2714
[email protected] [email protected]
Wilshire Associates Kristofer T. Kelleher, Managing Director
Pittsburgh, PA (412) 434-1602
$940.4bn advisory
$7.9bn discretionary (6/30/17) [email protected]
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Northern California asset manager is looking for a President/Entrepreneur
We’re looking for a leader who combines entrepreneurial flair with outstanding investment-management skills. He or she must be an accomplished strategist/portfolio manager across all asset classes. Ideally, we also want to see some hands-on experience as a business founder, owner, or partner.
The firm provides fiduciary consulting and full-discretion outsourced Chief Investment Officer services (OCIO) to large employee benefit plans, manages close to $40 billion under full discretion, and advises on an additional $50 billion in client relationships. The firm has maintained steady growth for over thirty years, employs thirty-five professionals and staff, and has achieved eminence in its field. This position offers an opportunity to build a substantial equity position and comes with a very competitive compensation and benefits package. Call: Charles Skorina, 415-391-3431
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A short guide to OCIO happiness
If you are a board-member or senior exec, you should have good answers to at least two questions before you cold-call any of those numbers. First: Why are you thinking of outsourcing? Return-envy? Peer funds seem to be doing better than you are? Sure, returns aren't everything, especially in the short term; and especially without taking risk-return balance into account. But you're tired of explaining that to your stakeholders and that nasty reporter who keeps writing bad things about you. A high-performing OCIO might get you better returns. And that would make your life easier. Meeting-fatigue? You're a smallish fund and you use a committee-and-consultant model. But the work-load on your volunteer members keeps ratcheting up. And your selfless investment-committee chair is retiring. And nobody else wants the job, especially not you. And setting up an internal investment office is not cost-effective. Boards, you recall, are supposed to set policy, not manage. An OCIO is an actual manager. An OCIO could manage, while your people set policy. Again, your life gets easier. Second: What is an easier life worth to you? Good OCIOs (like good CIOs) are not cheap. If you prioritize cheap, then you shouldn't be thinking in terms of active investment management. Call Vanguard and get a menu of index funds for a simple, diversified portfolio. You can buy all the beta you want for very little. That works for some people, but probably not for you and your stakeholders or you wouldn't be reading this list. You probably know what your consultant and external managers are charging you in terms of basis-points-per-AUM dollar to manage your money. But if an OCIO can get you an easier life, then what premium will you be willing to pay over that?
When and if you're ready to issue RFPs and interview firms, then it will be time to warm up the lawyers and accountants and do full-tilt due-diligence. There are pre-fab checklists out there with many, many boxes to tick. But that, conveniently, is beyond the scope of this letter. Good luck. And tell them Skorina sent you.
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A very early look at some FY17 endowment returns: writes-offs drag Harvard down As we go to press we have 1-year returns for 10 major endowments, with Harvard reporting on Tuesday, 19 September. HMC is 10th out of 10 thus far.
Rank Rtn AUM $bn Endowment
Chief Investment
Officer - - - - -
1 18.8 $1.80 Grinnell College Wilson, Scott
2 15.1 $10.80 U California Regents Bachher, Jagdeep
3 15.0 $1.20 U of Colorado Bittman/PWP
4 14.6 $4.96 Dartmouth College (Peedin, Pamela) Ruth, Alice
5 14.3 $14.80 MIT Alexander, Seth
6 13.4 $28.80 U of Texas/UTIMCO (Zimmerman, Bruce) Harris, Britt
7 12.4 $8.60 U of Virginia/UVIMCO Kochard, Lawrence
8 12.1 $3.00 U of No Carolina - Chapel Hill King, Jonathon
9 10.3 $0.98 U of Iowa Fdn Bethea, Jim
10 8.1 $37.10 Harvard U Narvekar, Narv
Scott Wilson at Grinnell College leads the pack. We took a close look at him in last week's letter, here: http://www.charlesskorina.com/?p=5094 Our friend Brandon Dixon at the Crimson has the skinny on Harvard here: http://www.thecrimson.com/article/2017/9/20/hmc-2017-results/
And see Michael McDonald at Bloomberg: https://www.bloomberg.com/news/articles/2017-09-19/harvard-ceo-says-8-1-return-signals-deep-structural-problems In a letter to the Harvard community Mr. Narvekar says forthrightly: "Our performance is disappointing..." He sets out the changes he's making (at a brisk pace). He attributes most of the bad news to write offs in several asset classes. But promises no miracles. "I expect it will take a number of years to re-position HMC in order to perform up to our expectations..." We'll have more commentary in due course as more returns are announced.
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The Skorina Letter Each issue explores how the world's most accomplished asset managers think and invest. Original content includes profiles and interviews with industry veterans and research on compensation and investment performance. Our insights and commentary come from our clients - board members, CEOs, chief investment officers - and the global investment community within which we work as executive search professionals. Institutional investors operate at the crossroads of capital, talent, and ideas, shepherding over seventy trillion dollars in global assets. It's a constantly evolving spectacle and The Skorina Letter gives readers a ringside seat. Prior issues can be found in "archives" on our website, http://www.charlesskorina.com/
