Interview with MITIMco

Unfortunately, it's in Boston
Unfortunately, it’s in Boston

Insight into the process used by institutional asset allocator, the MIT Investment Management company.  Some highlights I found interesting:

  1. They look for younger emerging managers and focus on their process over quantitative returns.
  2. Looking for evidence of those ‘buzzwords’ like discipline and patience. Example being identifying great business and waiting four years to invest.
  3. Turning away capital
  4. LT business planning
  5. Incentives aligned with shareholders. In one case, paying expenses instead of flat management fee
  6. An environment that fosters ‘buzzwords’ like discipline, patience, etc
  7. Generalists for the most part but invests in specialists when needed.

Worth a read! Unfortunately these guys are probably in the minority of asset allocators. If the goal is to have a successful asset management business, it likely comes back to raising assets and sales/marketing.

MITIMco Interview

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