Key Takeaways
- • John Hull has managed the diversified $6 billion Mellon Foundation portfolio for 12 years, following a prior 17-year role leading the New York State Common Retirement Fund, according to Institutional Investor.
- • Hull, named Top Large Foundation Investor of the year, outlined his views at a roundtable with the nine winners of the 2014 Institutional Investor U.S. Investment Management Awards.
- • Hull said he expects the best hedge funds will not cut their fees, stating that "for the most part, the fee is the fee."
- • Hull plans to increase exposure to diversified strategies, meaning multistrategy and credit hedge funds, by the end of 2014.
- • The Mellon Foundation portfolio has outperformed its peer group over the past decade, supported by 11 professional staff and an effective investment committee.
Summary
John Hull has captained the diversified $6 billion Mellon Foundation portfolio for 12 years, according to Institutional Investor. Before that, he spent 17 years at the helm of the New York State Common Retirement Fund. Institutional Investor reports that the foundation's portfolio has outperformed its peer group over the past decade, a result it attributes to a team of 11 professional staff and an effective investment committee.
Hull was named Top Large Foundation Investor of the year and took part in a roundtable with the nine winners of the 2014 Institutional Investor U.S. Investment Management Awards. At the discussion, he addressed the governance challenges of running a large public pension fund, noting that there was never a dialogue between his office and what he described as the corporate world's equivalent of a CFO.
On hedge fund economics, Hull said he believes the best funds will not cut their fees. "The funds you want to be in— I think for the most part, the fee is the fee," he said. His comments point to a view that top-performing managers retain pricing power despite investor pressure on fees.
Looking ahead, Hull said he hopes to have more exposure by the end of the year to what the foundation calls diversified strategies, which include multistrategy and credit hedge funds. The full roundtable transcript is available from Institutional Investor.
Hull was named Top Large Foundation Investor of the year and took part in a roundtable with the nine winners of the 2014 Institutional Investor U.S. Investment Management Awards. At the discussion, he addressed the governance challenges of running a large public pension fund, noting that there was never a dialogue between his office and what he described as the corporate world's equivalent of a CFO.
On hedge fund economics, Hull said he believes the best funds will not cut their fees. "The funds you want to be in— I think for the most part, the fee is the fee," he said. His comments point to a view that top-performing managers retain pricing power despite investor pressure on fees.
Looking ahead, Hull said he hopes to have more exposure by the end of the year to what the foundation calls diversified strategies, which include multistrategy and credit hedge funds. The full roundtable transcript is available from Institutional Investor.
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