Stanford Management Company
Stanford Management Company is an investment management firm that invests and manages Stanford University's endowment and other financial assets to provide long-term support to the University. It pursues an investment program with two primary goals: to provide material support for current University operations and to preserve the purchasing power of the Endowment so that future generations of students and scholars are similarly supported.
- SMC applies a rigorous assessment of risk and return to formulate an optimal asset allocation model that can deliver adequate returns over time.
- Within each asset class, SMC selects expert external partners to execute security-level decisions and drive gains from active management.
- The Merged Pool includes domestic and foreign public equities, real estate, natural resources, and private equity.
- While the portfolio is primarily exposed to equity positions, absolute return strategies that have low correlation to broader markets significantly contribute to diversification.
- The investment program is designed to accept a responsible degree of illiquidity to drive incremental returns.
- A small portion of the Merged Pool is held in high-quality fixed income and cash for liquidity purposes.