Unforseen

willsucceed Wrote:
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> Does anyone view the trend of limiting the
> investment opportunities of
> Endowment/Pension/State Treasuries by mandating a
> percent of investments must go to Social
> Responsible Investments (SRIs) and/or
> minority/woman owned investment firms a breach in
> fiduciary duty by the investment
> committees/manager?

No. People are free to choose their investment managers based on style, historical returns, hair color, outfit selection, first letter of their last name, etc. Doesn't mean that choosing it on anything other than the managers ability is a good idea, but it will happen.

> I am obviously bias due to my partnership in a
> non-diverse alternative firm, but many of the our
> prospects first question in their due diligence is
> "Are you a minority owned investment company?
> Yes/No". I must speculate that if we were
> minority owned, our AUM would be much larger then
> it is today.

Sounds like sampling error based on the clients you come into contact with. I don't know a lot of people losing business over this question. When push comes to shove, most people are looking for an investment manager who will perform well given their mandate.

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