[REPLAY] Kim Lew – The Carnegie Way (Capital Allocators, EP.52)

Portfolio Strategies

Kim Lew, Vice President and CIO of Carnegie Corporation, discusses the contrasting portfolio management strategies at Yale, Ford, and Carnegie. She highlights the Yale model's highly diversified approach, which contrasts with Ford's siloed strategy, where different portfolios operated independently. At Carnegie, there is a unique appreciation for the founder, influencing investment decisions and fostering a cohesive relationship between investments and program areas 1. Lew emphasizes the importance of tactical skills and a team capable of managing a volatile portfolio, noting that foundations can handle volatility due to their variable asset-based spending 2.

I think there's a million ways to make money. It's all in how you implement a strategy and how consistent you are and what skill set you have.

--- Kim Lew

This strategic diversity allows for flexibility and adaptability in managing investments.

   

Team Building

Succession planning and team building are critical components of Kim Lew's investment strategy at Carnegie. She acknowledges the challenge of managing a portfolio with managers of the same vintage, emphasizing the need to develop a farm team to ensure continuity and adaptability 3. Lew stresses the importance of incorporating young talent into investment teams, as fresh perspectives and pattern recognition are crucial for success in a rapidly changing industry 4.

I think building teams that make sure that you always have an inflow of young talent in is probably more important.

--- Kim Lew

This approach ensures that the organization remains resilient and prepared for future challenges.

   

Risk and Greatness

Kim Lew explores the balance between risk-taking and achieving greatness in investment and life. She shares her philosophy of embracing discomfort and creativity to make bold investment decisions, while acknowledging the stress and challenges that come with it 5. Lew believes that greatness requires a willingness to take risks and make difficult choices, both personally and professionally 6.

You have to decide what you want to be. It's okay to. Either choice is good.

--- Kim Lew

This mindset drives her team to pursue innovative strategies and strive for excellence.