Sandra Robertson – Calibrating Oxford’s Portfolio in a Crisis (Capital Allocators, EP.131)

Equity Strategy

Sandra Robertson, CEO and CIO of OU Endowment Management, discusses the strategic approach to managing public equity exposure amid market volatility. She emphasizes the importance of experienced managers who have navigated past crises in Asia, Europe, and the US. Robertson notes that while some companies, particularly in the airline industry, have become very cheap, overall market valuations are not compelling enough to warrant significant investment.

There's been one or two companies that have got very cheap, that have been sold off, if there's associated, particularly with the airline industry.

--- Sandra Robertson

She highlights the need for businesses to be positioned for survival over the next three to six months, focusing on cash flow and resilience 1 2.

   

Private Equity

In the realm of private equity, Robertson underscores the resilience required to navigate current challenges. She explains that the focus is on strong management teams and preserving cash, as these elements are crucial for survival. Robertson is encouraged by the thoughtful approach of management teams, many of whom have already called down credit lines to ensure liquidity.

I think you're really going to sort out strong management teams from mediocre management teams in this environment.

--- Sandra Robertson

This proactive stance is vital as companies aim to weather the storm over the coming months 1.

   

Global Insights

Robertson provides insights into the varied global investment landscape, noting the different regional responses to market conditions. She describes the mixed reactions from Asia, Europe, and the US, highlighting the unique challenges each region faces. Robertson points out that while China is slowly emerging from its crisis, Europe and the US are still grappling with significant challenges.

This is completely different from the GFC. I mean, this is a medical global crisis.

--- Sandra Robertson

The global nature of the crisis requires a nuanced understanding of each region's situation, as the investment business is not equipped to predict medical outcomes 3.