Investors Endowments and Foundations
February 09, 2012
Asset Managers Put Their Money on U.S. Equities
With global stock markets on the skids, U.S. corporate shares are starting to get the attention they deserve. Among their strong points: healthy earnings and generous dividends.
By Frances Denmark
Donald Lindsey has a high-conviction investment idea, and hes acting on it. As chief investment officer of the $1.2 billion endowment fund at George Washington University, Lindsey isnt looking to break into an esoteric market or load up on a new product. Instead, hes increasing the endowments allocation to good old U.S. equities: I still love the asset class, he says.
Lindsey, who has captained the Washington-based fund since April 2003, points to three trends that make U.S. shares a smart buy. First, earnings have far exceeded expectations: Share prices reached record highs in the second and third quarters of 2011. Because corporate America has done a great job of cutting costs, its fattened its profit margins.