"HMC’s investment professionals have historically focused their work within specific asset classes. Over time, however, this “silo” approach created unintended consequences. Portfolio managers conducted research and analysis and executed investment decisions within their respective asset class independent of the rest of the portfolio, sometimes creating both gaps in the portfolio and unnecessary duplication. This model also created an overemphasis on individual asset class benchmarks. Overall, I believe the silo approach did not lead to the best investment thinking for a major endowment.
We have now moved our approach towards a generalist investment model in which all members of the investment team take ownership of the entire portfolio. The team will have a singular focus: the performance of the overall endowment. We will engage in focused debate and discussion about investment opportunities, both within asset classes and across the investment universe."