Managing money for a major university is like square dancing in a minefield. Faculty members absurdly act like they own universities, and often exploit their institutions for short-term, personal and idiosyncratic goals—not exactly a good recipe for smart investing. Calls to divest from whatever country the professoriate has decided to hate lately are a good example here. It’s probably just not worth the trouble if you a big time investment adviser to take the job. Why not go work for a hedge fund?
Which may be what University of Texas endowment manager Bob Boldt was thinking when he resigned recently. Paul Kedrosky sums up the situation nicely:
Only in the deranged world of universities would an 8.5% annual rate of return on a $10+billion portfolio have you on the outs with your bosses. It has happened again, however. Bob Boldt, the head of University of Texas Investment Management Company (UTIMCO) resigned, effective last Friday, to return to the private sector.
Boldt resigns from the UT Investment Management Co. [Associated Press in the Houston Chronicle]
Another Endowment Manager Bites the Dust [Infectious Greed]