Penn CIO Peter Ammon on Rare Investment Trait

You have to be a certain kind of investor to manage money for Penn.

Investing is incredibly competitive — there are a lot of smart investors around the world looking for opportunities. To earn outsized risk-adjusted returns, investors have to have a differentiated view of an investment and believe that it is mispriced in the market. Maybe it’s because they have uncovered something through their research that makes them think differently about a business. Maybe it’s because other investors don’t like owning a company that has a lot of near-term uncertainty. Maybe it’s because other investors aren’t comfortable navigating a bankruptcy process. But whatever causes the mispricing, it takes a certain courage for an investor to say, “I’m right and others are wrong.” Great investors strike a balance between having the confidence to believe they are right, often in the face of a market that vehemently disagrees, while still maintaining the humbleness to admit when they are wrong.

Penn CIO Peter Ammon on Why ‘People Matter Immensely’ to Successful Investing, Knowledge@Wharton

It is a rare trait.

By the way, how much does it cost to run an Ivy League athletic program?

Penn Athletics itself has an overall endowment of roughly $80-85 million. It’s clear that it costs a lot of money to run the program — Penn Athletics’ expenses were about $41.5 million in the 2017-18 fiscal year. The question, then, is where the program gets its money from.

Penn Athletics receives about 40% of its operating budget from the University. The balance, plus any efforts to grow the endowment, come from fundraising, which is why it launched Game Onward. Penn, like most Ivy schools, cannot rely on tickets or merchandising revenue streams in the way some bigger athletic programs around the country can.

An inside look at Penn Athletics’ multi-million-dollar fundraising efforts, The Daily Pennsylvanian

Benjamin Franklin sitting in front of College Hall at Penn.
Twitter @Pennalumni

Post by Marcelino Pantoja