| |
|
| |
Peter Gilbert: “We can be much more nimble” Photographs By Chris Crisman |
Running a multibillion-dollar state pension fund certainly had its advantages. The ability to invest larger amounts in hedge funds and other private vehicles, and even lead other investors in such transactions, gives a retirement system negotiating power, allowing it to win more favorable fees and other terms from money managers. Size also helps a fund seed managers and strategies and maintain separate accounts, which can enhance performance.
But bigger isn’t always better, says Peter Gilbert, chief investment officer of Lehigh University’s $1 billion endowment since August 2007. Gilbert’s previous job, as CIO of the then-$32 billion Pennsylvania State Employees’ Retirement System, gave him the power to play hardball with managers. But he contends that a smaller endowment makes it easier to invest with smaller, more niche managers, and that can help diversify a portfolio. ...