Kim Lew, CIO of Carnegie Corporation of New York, explains how conventional evaluation shortcuts and pedigree filters unintentionally exclude diverse candidates in asset management.
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“Well, if that's your bias, you are going to disadvantage people of color. Let's just instead think about what Someone being on the lacrosse team tells you about them, and is there another proxy for that? That is more applicable for a person of color, or a person who's just come from a different background, who may not have had access to being on the lacrosse team. Maybe they worked. Did they work in a restaurant that, the way shifts were coordinated, the way the restaurant was run, took a lot of teamwork, took a lot of coordination, and that tells you the same thing.”
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Disclosure
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Diversifying large asset managers creates more impact than funding emerging ones
“I'm actually Of the belief that the bigger impact will be on getting the large firms to be more diverse. That has a bigger overall impact than funding diverse managers. Although I think the more bang for the buck is finding these new diverse managers to suppor…”
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AssertionNot checkable as stated
Carnegie found a direct correlation between manager performance and diversity scores
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AssertionSupported
Research shows diverse manager return distribution exactly matches general funds
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Kim LewAug 17, 2020▶ 33:36Diversity, Equity & Inclusion 2: Kim Lew – The Opportunity and Challenge (Capital Allocators, EP.152)
Insight
High fundraising hurdles should make funded diverse managers perform better
“Arguably, they should be better because it's so hard for a diverse talent to get capital. If you do, chances are you're good, right? Like you may not be great, but you probably weed out all the average because there's not a lot of rich dads who give their dive…”
Kim LewAug 17, 2020▶ 34:32Diversity, Equity & Inclusion 2: Kim Lew – The Opportunity and Challenge (Capital Allocators, EP.152)
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