Jon Hansen and Kathryn Stephansky (ND‘03) from Cambridge Associates visited Notre Dame on April 4 to speak to students about asset allocation, the factors that affect it, and the related real world challenges.
Cambridge Associates is an investment consulting firm established in 1975, with an AUM of over $190 billion. The company advises institutional investors, private clients, foundations and endowments, as well as corporate and government entities.
The presentation covered all parts of asset allocation, including why it matters, real world examples and current topics in investment implementation. Hansen and Stephansky explained asset allocation as the practice of deciding how much an investor allocates to different asset classes like stocks, bonds, and cash. They also touched on how the firm tries to earn more than the spending rate, which includes high equity allocation, reduced volatility, and diversification. The presentation provided students a solid foundation for understanding the nuances of asset allocation and gave insight on its application in the real world.