This content is from: Opinion

Quick Case: The Value of Governance

I think -- actually I'm certain -- that good governance is the single most important factor in the success of any institutional investor. And Lehigh University CIO Peter Gilbert agrees.

If you read my 'Muppet Manifesto' last week, you'll know that I think -- actually that I'm certain -- that good governance is the single most important factor in the success of any institutional investor. By far. Am I crazy? No doubt. But that doesn't stop Lehigh University CIO Peter Gilbert from agreeing with me. And he's learned his lessons the hard way.

Listen to him describe his transition from running public pension to running a university endowment: "It's a very different environment compared to being at a public pension...The investment committee at Lehigh are all Lehigh alumni, with day jobs in the investing world, so they're doing this because they really care about the university... That wasn't true on the state board -- they were bright people who learned quickly, but they didn't have industry background, so it took longer to get things accomplished... Public funds would be better off with less politics and more investing freedom... "

Words of wisdom!

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