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Post by td128 on Apr 12, 2020 17:35:35 GMT -5
Saw this on LinkedIn.
Things that make you go hmmm. Interesting timing and delivery. I wish him all the best in his future pursuits.
Timothy Jarry Chief Investment Officer at College of the Holy Cross
6h • 6 hours ago
After more than 16 years at Holy Cross, I decided to step down as Chief Investment Officer of the College. I will forever be grateful for all of the wonderful relationships I formed during my tenure with my HC colleagues, Investment Committee members, investment partners, endowment and foundation peers, and most importantly, my Investment Office team. Thank you to everyone who was part of the journey!
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Post by purplehaze on Apr 12, 2020 18:21:15 GMT -5
Well the reading ‘between the lines’ on this one is as easy as it gets
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Post by KY Crusader 75 on Apr 12, 2020 18:37:25 GMT -5
I have a great candidate to replace him: Mr Index...
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Post by crossbball13 on Apr 12, 2020 19:58:50 GMT -5
As callous as this may sound— very good news!
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Post by longsuffering on Apr 12, 2020 20:02:03 GMT -5
He was given a barrel and a pair of suspenders as a retirement gift.
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Post by sarasota on Apr 12, 2020 22:25:39 GMT -5
Indexing vs. Active Management. One needs to weigh against the potential for above-index return the cost of proven talent to actively manage.
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Post by sarasota on Apr 12, 2020 22:34:29 GMT -5
My grandson did a 5-yr program at Quinnipiac. A stepdaughter did the same at Lehigh. They are attractive programs. Maybe HC should add an M.A. in some Liberal Arts areas. When I was at HC they had an M.S. in Chemistry (I believe). Is anyone in the sports establishment at HC trying to educate TPTB in the positive impacts MA/MS degrees can have on HC's sports programs?
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Post by KY Crusader 75 on Apr 12, 2020 22:46:41 GMT -5
Indexing vs. Active Management. One needs to weigh against the potential for above-index return the cost of proven talent to actively manage. I don't believe many managers beat the market index year after year. One of our posters (maybe chu chu?) has experience with helping oversee a portfolio at a charity and as I recall the charity did better with the passive approach than with active investing
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Post by longsuffering on Apr 12, 2020 22:50:57 GMT -5
My grandson did a 5-yr program at Quinnipiac. A stepdaughter did the same at Lehigh. They are attractive programs. Maybe HC should add an M.A. in some Liberal Arts areas. When I was at HC they had an M.S. in Chemistry (I believe). Is anyone in the sports establishment at HC trying to educate TPTB in the positive impacts MA/MS degrees can have on HC's sports programs? What the sports establishment likely couldn't do to convince TPTB, a little invisible virus probably will do. TPTB may be quicker to expand their vision of HC for financial reasons than to win a few more games.
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Post by Pakachoag Phreek on Apr 13, 2020 9:02:44 GMT -5
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Post by bison137 on Apr 13, 2020 9:31:36 GMT -5
Indexing vs. Active Management. One needs to weigh against the potential for above-index return the cost of proven talent to actively manage. I don't believe many managers beat the market index year after year. One of our posters (maybe chu chu?) has experience with helping oversee a portfolio at a charity and as I recall the charity did better with the passive approach than with active investing Some of you may remember that challenge that Warren Buffett put out in 2007. He offered to wager a large sum of money that no hedge fund manager could select a pool of five hedge funds that collectively would beat the S&P index (after expenses) over a ten year period, with the loser donating to the winner's charity. Only one hedge fund manager accepted the bet. The investments he selected got crushed by the S&P.
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Post by flutiewasrejected on Apr 13, 2020 9:43:20 GMT -5
Maybe appeal to Brendan Swords??
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Post by Pakachoag Phreek on Apr 14, 2020 6:59:26 GMT -5
Swords makes too much money where he is. Jarry and his predecessors are not independent operators. The BoT has an investment committee, and the college has a board of advisers, many of whom have had careers in banking and investment. See list below: catalog.holycross.edu/governance/#advisoryboardtext
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Post by dadominate on Apr 14, 2020 10:07:58 GMT -5
no active manager beats the major indices over longer periods of time (10+ years). and every active manager charges fees for that underperformance.
it really is a no-brainer over time, there is simply a TON of money in the industry that aims to dispel overwhelming data. fortunately, jack bogle got the ball rolling on index funds years ago and now all of the major investment houses offer these products with competitively lower fees to the point where the fees are almost negligible.
iirc, some are even offering no fee products.
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Post by princetoncrusader on Apr 14, 2020 20:28:31 GMT -5
Could this also be a cost cutting move by the BoT, since the CIO was the highest paid employee atop Mt. Saint James? I believe the latest Form 990 showed he was making ~$400k. Was this a case of poor manager selection or bad asset allocation? I had a few conversations with Tim over the years at the Leadership dinner in NYC and the annual PC dinner. Seemed quite knowledgeable, but i could never figure out if he was the decision maker or just taking orders from the investment committee. I wish him well as he transitions.
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Post by CHC8485 on Apr 14, 2020 20:34:51 GMT -5
I'd be thrilled to take orders from the investment committee for half the coin they were paying Jarry.
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Post by KY Crusader 75 on Apr 14, 2020 20:53:44 GMT -5
no active manager beats the major indices over longer periods of time (10+ years). and every active manager charges fees for that underperformance. it really is a no-brainer over time, there is simply a TON of money in the industry that aims to dispel overwhelming data. fortunately, jack bogle got the ball rolling on index funds years ago and now all of the major investment houses offer these products with competitively lower fees to the point where the fees are almost negligible. iirc, some are even offering no fee products. Amen. A typical managed fund will have an expense ratio of 0.8% or 0.9%. An index fund might have a ratio of .015%. Let's say you are fortunate to have $1,000,000 in the fund. You're paying the active manager (we'll use .085%) $8,500 to likely underperform while the index fund charges you just $1,500. A very few funds will outperform the market over time--classic examples at Fidelity (where I have my IRA) are Peter Lynch (alas a bc grad) who drove Magellan to huge success years ago and Will Danoff who has led Fidelity Contrafund since 1990. One trouble is that you could put your $$ in Contrafund and find out the Danoff is retiring and will be replaced by who knows who?
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Post by johnny on Apr 15, 2020 8:46:00 GMT -5
no active manager beats the major indices over longer periods of time (10+ years). and every active manager charges fees for that underperformance. it really is a no-brainer over time, there is simply a TON of money in the industry that aims to dispel overwhelming data. fortunately, jack bogle got the ball rolling on index funds years ago and now all of the major investment houses offer these products with competitively lower fees to the point where the fees are almost negligible. iirc, some are even offering no fee products. Amen. A typical managed fund will have an expense ratio of 0.8% or 0.9%. An index fund might have a ratio of .015%. Let's say you are fortunate to have $1,000,000 in the fund. You're paying the active manager (we'll use .085%) $8,500 to likely underperform while the index fund charges you just $1,500. A very few funds will outperform the market over time--classic examples at Fidelity (where I have my IRA) are Peter Lynch (alas a bc grad) who drove Magellan to huge success years ago and Will Danoff who has led Fidelity Contrafund since 1990. One trouble is that you could put your $$ in Contrafund and find out the Danoff is retiring and will be replaced by who knows who? A couple contrarian thoughts on the active vs passive debate:
- since the GFC it is hard to dispute that passive funds have been a better alternative than active. However, this has been over a period of extremely low volatility in markets (as measured by the VIX index) relative to it history, and where markets have been fueled by quantitative easing. Prior to this period of unorthodox monetary policy, the case for active was much more compelling and active managers in general had a pretty good run in the 2000-2009 period. My point being that these things tend to be cyclical (active also had a nice run in mid 80's to early 90's, but underperformed in the mid to late 90's). Personally I have a problem with the Fed jumping in to support equity markets which is seemingly what has occurred over the last decade.....that is not their mandate
- Many of the valuation factors used by active managers have had a very poor run over the last decade. Much of this has been fueled by the FAANG stocks and which are extremely expensive on a P/E basis. This may be sustainable and maybe Value investing is dead, but Buffett himself is an advocate of the value approach to investing (I have a difficult time reconciling his advocacy for passive investing with his own approach....how is he not an active manager?). I vividly remember seeing Buffett interviewed where he stated that he never understood why people don't view equities more like other items.........if an item is inexpensive in a grocery store it will fly off the shelves, shouldn't investors similarly look for a good deal on a $1 of earnings from their investment?
- Institutional investors like HC's endowment should have enough assets where they are able to pay on a performance schedule - manager gets a nice fee in periods where they outperform, and severely reduced fee in periods of underperformance
- The argument isn't always as black and white as active vs passive. Active strategies include managed volatility and defensive strategies which may offer significant outperformance in down markets if investors are willing to accept a bit of under-performance when markets are riding high such as 2019.
I understand the case for passive. Just trying to add another perspective.
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Post by Pakachoag Phreek on Apr 15, 2020 9:01:30 GMT -5
welcome johnny. Also, about 30 percent of HC's investment portfolio is in private equity and 'real' assets. 44 percent of Bowdoin's portfolio is private equity and 'real' assets. Unfortunately, the relative return for each asset class is not provided to the public. www.bowdoin.edu/finance/pdf/audited-financial-statements-fy19.pdf
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Post by alum on Apr 15, 2020 9:02:39 GMT -5
As I don't manage hundreds of millions of dollars each year, I don't really understand how this works, but is it reasonable to expect that the endowment perform as well as an index fund considering the fact that to some degree it is made up of lots of different buckets of sometimes restricted funds? For example, many donors give endowment funds to support financial aid. Those funds have to generate income yearly. What is even more problematic is that college endowments are filled with little pockets created many years ago to provide aid to "graduates of X high school," or a particular academic department. Some "sub-funds" need to generate income each year while others might only be used when a particular need arises. I would imagine each has to be accounted for and its investment designed to promote the donor's intent.
Can someone who understands this better shed some light for me?
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Post by Tom on Apr 15, 2020 10:24:27 GMT -5
Jarry is heading to St Johns High School in Shrewsbury
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Post by Ray on Apr 15, 2020 11:02:25 GMT -5
Jarry is heading to St Johns High School in Shrewsbury Safe to say there's a pay cut involved.
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Post by crusader12 on Apr 15, 2020 11:11:53 GMT -5
Dear Saint John’s Community,
I hope this e-mail finds you and yours safe, happy, and well during this difficult time. The Easter season brings us a time of hope and promise. I pray we can all join together in that hope and promise in the weeks and months ahead.
I am writing to share an update on the Chief Financial Officer position at Saint John’s High School. Since this fall, Lynne Cronin, our current CFO, and I have been talking about her future at Saint John’s and her desire to stay connected to the school but to step back from her role as Chief Financial Officer. Lynne has been an amazing asset to our school. Hired by Br. Conal Owens, CFX in 1996, many in our community have benefitted from her long and excellent tenure at the school. She has been a loyal steward of our school's finances and taken great care in her work directly with students and families in the financial aid and student aid program - a program that currently provides over $2 million in assistance. Her commitment and love of Saint John’s are second to none and we are a better institution thanks to her leadership and vision. She is a giant in our community.
It is truly with mixed emotions that I share with you that effective July 1, 2020, Lynne will step down as CFO at Saint John's. She will transition to a new part-time position, Director of Financial and Student Aid, where she will work with a new CFO and the Director of Admissions and Enrollment Management in overseeing and developing effective strategies with financial aid, our Pioneers Care program, and our emerging student lunch program.
While it is impossible to replace someone with Lynne’s commitment and love of Saint John’s, I am thrilled to announce, after a directed search, the hiring of Timothy M. Jarry '96, CFA, CPA to serve as our next Chief Financial Officer, commencing on July 1, 2020. In the interim, Tim will be working with us as a consultant as we prepare for the transition.
Tim comes to Saint John’s after 16 years at the College of the Holy Cross serving as Investment Officer (2004-2007), Associate Chief Investment Officer (2007-2011), and, since 2011, Chief Investment Officer and Assistant Treasurer, where he was responsible for the management of the College’s endowment and other long-term investments, as well as provided support to the Finance and Audit Committees of the College’s Board of Trustees. Tim is a graduate of the College of the Holy Cross where he earned a BA in Sociology and of Northeastern University, earning a Masters in Business Administration and an MS in Accounting. He is also a Chartered Financial Analyst and Certified Public Accountant.
Tim is a well-known and highly respected in our community serving an advisor to the Finance Committee of the Saint John’s Board of Trustees, Treasurer of Massachusetts Biomedical Initiatives, Director and Chair of the Investment Committee of the Worcester Business Development Corporation, Member of the Investment Committee of the Greater Worcester Community Foundation and the Diocese of Worcester as well as a Corporator of Bay State Savings Bank and the Worcester Historical Museum. Tim lives in Shrewsbury with his wife, Julie, and their two daughters.
I welcome Tim to his new role at Saint John’s and express my deepest and most sincere gratitude, both personally and professionally, to Lynne for all her work. She has been an invaluable administrator for the school and advisor to me personally during my tenure at our school. All the best and God bless, Alex Zequeira P'19 Headmaster
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Post by crusader12 on Apr 15, 2020 11:26:58 GMT -5
The issue with many passive index funds is that they are typically geared toward growth. With these pensions/endowments needing yield it is difficult to just say index it and call it a day. Need to have significant portion of the funds in assets providing a 4%+ yield which many index funds cant provide (PFF & HYG as examples do provide that but carry a higher degree of fixed income risk). That's why you see a lot of PE and Real Assets in these endowments in an environment where the 10 year treasury is under 1%. That being said a sizable portion should be index funds especially for growth. There are several SMA's (Separately managed accounts) where the fees are typically 75% cheaper than a mutual fund. There are several of these SMAs that do consistently beat their benchmark year after year.
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Post by KY Crusader 75 on Apr 15, 2020 11:33:09 GMT -5
When I speak of moving to index funds, I am not talking about just the fund expense savings (index funds versus actively managed funds) but also the savings of having a very, very small staff manage the nest egg versus paying a much larger staff to manage things.
When I was still working (I retired in 2016) I signed up to receive the free guide to retirement from Fisher Investments. It had some good advice. Of course I knew my signing up would prompt a relentless follow up effort from Fisher trying to get me to turn my assets over to Fisher for management. I ignored phone call after phone call, finally picking one up to try to put the calls to a stop. I had a discussion with their roper who just could not understand why I wouldn't go with Fisher. Finally I asked him: does your management deliver returns greater than index funds? He could not give me an affirmative answer. That ended things. I am very happy with what I have done on my own
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