Getty Trust only executes co-investments alongside existing high-conviction managers
Jim Williams · James Williams – Curating The Getty's Assets (Capital Allocators, EP.50) · Apr 30, 2018 · at 37:14
Jim Williams, CIO of the J. Paul Getty Trust, details the endowment's strict policy against taking cold-call or inbound co-investment deals.
0:00 / 0:19exact quote · 19.0s
720p mp4 · rendered on demand · StarZero watermark
“The big but is that it has to be with an existing high conviction manager only. We never do a co-investment that comes in over the transom. We don't do a cold call co-investment. We only do it with our highest conviction managers.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Jim Williams
Getty Trust overweights energy on strong fundamentals despite negative sentiment
“We have the overweights that I mentioned in China, and the other big overweight is in energy. And what we like about energy, and still do, is the fundamentals are really, really good, but the attitudes, the news reports, the emotions are not good, and that's r…”
Getty Trust private equity beats public equity by 6% over full cycles
“From studies we've done, we've known that our private equity returns are the highest asset class return that we have. We know that over full market cycles, it's a good full six percentage points above public equity or above the total fund return.”
Specialists select better managers, but generalists make better asset allocation decisions
“From that expertise, I think you can do a superior job in manager selection under an asset class structure, but it has shortcomings. You can become too narrow and too insulated or isolated within your asset class, and the generalists do a better job on asset a…”
Portfolio returns are driven primarily by manager selection over asset allocation
“And our internal analysis and look across this is that it's really more manager driven.”
Getty overweights China as managers outperform benchmarks by 1,000 basis points
“And right now we have a really big overweight on China, but I think it has more to do that we have high conviction in several Chinese managers than it is about a view on China. We like China. We think there's a tailwind story there, but the real reason we have…”
Getty Trust endowment generated $1 billion in alpha over 15 years
“If we looked at our returns versus benchmark going back over the 15 years that we're here, it's between one and two percent, call it a percent and a half, do a percent and a half on the assets that we have compounded over 15 years. We've had over seven billion…”