The Endowment Playbook: Balancing Long-Term Goals with Current Market Volatility

In this wide-ranging conversation, Jeff Malec sits down with Dave Morehead, CIO of Baylor University's $2.2 billion endowment, to explore the unique challenges and strategies of institutional portfolio management. From his early days trading derivatives in Chicago's financial district to overseeing one of Texas's prominent university endowments, Morehead shares invaluable insights on risk management, alternative investments, and maintaining intergenerational equity.
The discussion covers Baylor's innovative approach to portfolio construction, including their successful deployment of volatility strategies during the 2020 market crash, their current cautious stance on equity exposure, and their philosophy on private investments. Morehead explains why they're shifting away from cyclical assets in private markets and focusing on secular growth trends in healthcare, technology, and consumer sectors.

Particularly timely is their analysis of recent market volatility, bond market dynamics, and the broader implications of trade policies on institutional investment strategies. The conversation provides a rare glimpse into how a major university endowment navigates market uncertainty while maintaining its core mission of supporting education and student scholarships.

Whether you're an institutional investor, family office manager, or investment professional, this episode offers valuable perspectives on long-term portfolio management and the evolving landscape of institutional investing. From helium gas investments to long volatility strategies, learn how one of the industry's thoughtful practitioners approaches risk and return in today's complex markets.
You want to learn how institutional portfolios really work? You want to understand how endowments think about risk? You want to hear from someone who's traded it all and now manages billions? SEND IT!

Chapters:
00:00-00:48 = Intro
00:49-09:26 = Hedge Fund Executive Transitions to Higher Education: Exploring Dave Morehead's Career Pivot
09:27-26:15 = Baylor University's Strategic Endowment Investment Philosophy Revealed
26:16-36:16 = Beyond the S&P 500: Discovering Unique Investment Opportunities in Helium and Niche Markets
36:17-46:32 = Hedging Strategies and Volatility Management: Navigating Market Uncertainty with Strategic Risk Mitigation
46:33-53:59 = Trust Issues and Geopolitical Challenges: Overcoming Uncertainty in Modern Investing
54:00-01:00:41 = The Long-Term Perspective: Endowment Investing Beyond Quarterly Returns
01:00:42-01:09:39 = An 80s Rock Music Nostalgia Trip: Revisiting the Iconic Sounds of the Decade

Follow along with Dave on ⁠LinkedIn⁠   / davidmorehead   and ⁠X⁠ @CIO_Baylorand https://x.com/cio_baylor - also be sure to check out ⁠Baylor's endowment⁠ https://investments.web.baylor.edu/ba... for more information!

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