The Endowment Committee Paradox: Why Smart People Make Bad Investment Decisions
Ever wondered why rooms full of brilliant minds—top investment professionals and executives—often lead to mediocre investment outcomes for endowments and pensions? In my latest Forbes Finance Council article, I dive into the "endowment committee paradox": how consensus-driven decisions prioritize career safety over empirical performance, backed by data showing a 1.6% annual drag on returns.
Drawing from my personal experience in mathematical physics and professional baseball, I outline a meritocratic architecture predicated on first-principles risk management, complex adaptive systems, and closed-loop validation.
Outsmart the paradox and lead with evidence: Read the full Forbes piece for the blueprint.
