Endowments, Foundations and Alternative Investments: A Post-Crisis View
Tuesday, March 27, 2012
5:00 PM-8:00 PM
Keith Black, PhD, CFA, CAIA
Ennis Knupp + Associates
Chair: Erik Einertson, CFA
This is a CFALA Alternative Investments Communities of Interest Event
co-sponsored with CAIA Los Angeles
Endowments and foundations have aggressively increased their alternative investment holdings in recent years, with the largest universities moving from an average allocation of 32% in 2002 to 60% in 2010. The endowment model, which is generally defined as a portfolio with larger weights in alternative investments and smaller weights in liquid equity and fixed income securities, has attracted many admirers. However, the largest endowments experienced losses exceeding 25% in the year ending June 2009.
This significant drawdown has caused a reexamination of the risk and return tradeoffs of the endowment model. Investors considering adopting the endowment model need to consider the specific circumstances of their organization and the role that liquidity, manager selection and tail risks play in the long-term success of the fund.
Keith Black has over twenty years of financial market experience, serving approximately half of that time as an academic at the Illinois Institute of Technology and the other half as a trader and consultant to institutional investors.
During his most recent role at Ennis Knupp + Associates, Keith advised foundations, endowments and pension funds on their asset allocation and manager selection strategies in hedge funds, commodities and managed futures. Ennis Knupp clients had $2 trillion in total assets with $60 billion in alternative investments. Prior experience includes commodities derivatives trading at First Chicago Capital Markets, stock options research and CBOE market-making for Hull Trading Company, and building quantitative stock selection models for mutual funds and hedge funds for Chicago Investment Analytics.
He contributes regularly to The CFA Digest, and has published in The Journal of Global Financial Markets, The Journal of Trading, The Journal of Financial Compliance and Regulation, The Journal of Investments, The Journal of Environmental Investing, and Derivatives Use Trading and Regulation. He is the author of "Managing a Hedge Fund", which was named to the list of the top ten books of 2005 by the Financial Engineering News. Dr. Black has participated in over 160 conferences and media quotes, including the Financial Times, Chicago Tribune, CFA Magazine, NPR, Fox, and NBC. He was named to Institutional Investor magazine's list of "Rising Stars of Hedge Funds" in 2010.
Dr. Black previously served as an assistant professor and senior lecturer at the Illinois Institute of Technology's Stuart school, where he taught courses in both traditional and alternative investments, including courses in hedge funds and private equity. His research interests include hedge fund factor models and equity volatility derivatives.
Dr. Black earned a BA from Whittier College in Economics and Mathematics/Computer Science, an MBA in Finance and Operations Research from Carnegie Mellon University, and a PhD in Management Science/Finance from the Illinois Institute of Technology. He has earned the Chartered Financial Analyst (CFA) designation and was a member of the inaugural class of the Chartered Alternative Investment Analyst (CAIA) candidates.
CFALA Members: $10.00 (place cursor on amount for link)
Time: 5:00 PM-8:00 PM, Light Reception
Location: Omni Los Angeles
251 South Olive Street
Los Angeles, CA 90071
For directions call hotel: (213) 617-3300
Event parking at the Omni $12.00
Dress Code: Business Casual