Hewlett Foundation CIO Ana Marshall on Due Diligence

Earlier this year the CIO at the Hewlett foundation was asked about their manager selection process.

At the end of the day, we hire managers that we believe can generate superior and consistent performance. When we do our due diligence, we spend a great deal of time on the firm. On philosophy, the strategy of the firm, the bench strength, so beyond the GPs and the PMs. Who’s underneath that? Are there enough people challenging of the main decision makers? All of that goes into our decision process. We definitely spend an enormous amount of time on how they think about hiring, how they think about promoting, how they think about the next layer and transitions, all of that.

We don’t do the “Here’s a questionnaire, check the box, how many women do you have,” because the important thing is how they are thinking about the next generation. How are they thinking about making sure that every decision has the inclusion of different voices? That’s what matters to us. By focusing too much on the checking the box, you miss whether it actually is becoming part of the process and that’s what we like to see.

William And Flora Hewlett Foundation Encouraging Diversity In The Institutional Investing Space | Ana Marshall, Vice President & Chief Investment Officer | Q&A, Trusted Insight

Check-the-box investing rarely pans out.

To learn how the Hewlett Foundation evaluates new fund managers, listen to Ana Marshall on Capital Allocators.

Episode 111: Ana Marshall – Applied Direct Investing at the William and Flora Hewlett Foundation

Bill Hewlett was a part-time botanist and has photographed wildflowers for many years.
Photo by William R. Hewlett © California Academy of Sciences

Post by Marcelino Pantoja