Andy Golden, longtime head of the Princeton University Investment Company (PRINCO), discusses hedge fund allocations with Ted Seides.
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“If we were condemned to produce the median return of the hedge fund space, there's I don't think we'd have any allocation.”
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More from Andy Golden
Insight
Golden: In investing, theory can outweigh conflicting empirical data
“Being able to have an appreciation of theory over data in the right bounds is key. You know, there are times when you want to say, if the data don't support the theory, the data are wrong, right?”
Andy GoldenJun 26, 2017▶ 25:52Andrew Golden – Beyond the Long Term (Capital Allocators, EP.13)
Opinion
Golden: Since 2009, there has been an active cost to portfolio diversification
“It's still, you know, since 2009, the frustration has still been that not just zero return to diversification, there's been a cost to diversification, but there's also been a cost to hard work.”
Andy GoldenJun 26, 2017▶ 35:59Andrew Golden – Beyond the Long Term (Capital Allocators, EP.13)
Disclosure
PRINCO entered the 2020 crisis with a significant bet against US stocks
“We had also not done that evenly and had a fairly significant bet against the US stock market. Which was helpful in March.”
Andy GoldenApr 23, 2020▶ 13:16Andrew Golden – Navigating Princeton's Endowment Through (Another) Crisis (Capital Allocators, EP.133)
AssertionNot checkable as stated
Golden in April 2020: China is the least troubled financial market
“China is the least troubled area in terms of markets right now.”
Andy GoldenApr 23, 2020▶ 13:30Andrew Golden – Navigating Princeton's Endowment Through (Another) Crisis (Capital Allocators, EP.133)
Insight
Dislocation drawdown vehicles force allocators to suboptimize their portfolios
“I have long been frustrated by a trend among Marketable managers to create drawdown vehicles to be used in market dislocations because it causes us to suboptimize our portfolio.”
Andy GoldenApr 23, 2020▶ 20:14Andrew Golden – Navigating Princeton's Endowment Through (Another) Crisis (Capital Allocators, EP.133)
Insight
Golden: Performance attribution studies are rarely worth the paper they're written on
“You know, attribution studies tend not to be worth the paper they're written on, and I believe or not can go on long about that.”
Andy GoldenJun 26, 2017▶ 28:03Andrew Golden – Beyond the Long Term (Capital Allocators, EP.13)
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