Sam Gallo, new CIO at University System of Maryland Foundation

In May I successfully concluded a search for a new chief investment officer for the University System of Maryland Foundation with the appointment of Samuel N. Gallo, CPA, CAIA, BS in finance and BS in accounting from the University of Illinois, 1999.

Leonard Raley, the president of the foundation, and David Saunders, the chairman of the investment committee (and co-founder of K-2, one of the industry’s largest fund of hedge funds) were instrumental in defining and driving the search.

In this issue:

Farouki Majeed – a CalPERS vet heads back to Ohio

Interview with Peter Stein: an endowment CIO reinvents himself

Risk management: strategic or tactical?

A TOTAL ENTERPRISE APPROACH TO ENDOWMENT MANAGEMENT

By Mark A. Schmid, VP & CIO and Que Nguyen, MD of Strategy – The University of Chicago

Introduction

The crisis of 2008 and the ensuing losses in risky portfolios, including endowment portfolios, continue to affect the financials of universities, despite the rebound in asset prices over the past two years. Although the smoothing inherent in most payout formulas dampened the immediate impact of investment losses, it also spread out the pain over a longer time period. Endowments have always been and continue to be institutions with a long term outlook for investments, but universities do have immediate financial obligations in their day to day operations.