REPLAY - Scott Malpass – The Fighting Irish’s Twelfth Man (Capital Allocators, EP.25)

Manager Selection

Scott Malpass, Vice President and CIO of Notre Dame University, emphasizes the importance of relationships and expertise in selecting investment managers. He believes that sourcing ideas from current partners and maintaining a network of contacts is crucial. "You have to be more entrepreneurial," he advises, highlighting the value of personal interactions over online research 1. Malpass also discusses the decision-making process, noting that the time spent with potential managers varies based on their experience and reputation 2.

   

Asset Allocation

Asset allocation at Notre Dame has evolved from a structured approach to a more flexible, skill-based strategy. Initially, clear targets were set for private equity and venture capital, but as the endowment grew, the focus shifted to finding the best managers 3. Malpass acknowledges the role of passive management, stating, "Most people should do passive and they should be low cost," as it reduces trading fees and turnover 4. This approach allows for opportunistic and tactical adjustments while maintaining a long-term perspective.

   

Risk Management

Risk management in investment portfolios is increasingly challenging due to market volatility and competition. Malpass expresses concern over global leverage and its impact on economic growth, emphasizing the need for innovative strategies to achieve desired returns 5. He values collaboration and open communication with peers, stating, "I find it easier today to share ideas than I did ten years ago," which aids in navigating uncertainties 2. This collaborative approach is vital for adapting to the evolving financial landscape.