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Note: Wake Forest may have generated returns that were among the best in the endowment world over the last decade, but the university thinks it's time to rein in risk and reevaluate its asset allocation. The university brings in outsider James Dunn to add guard rails to the portfolio, evaluating risk, portfolio construction and asset allocation afresh.
Wake Forest may have generated returns that were among the best in the endowment world over the last decade, but the university thinks it's time to rein in risk and reevaluate its asset allocation. Though it escaped some of the damage from the credit crisis , the portfolio is down 20.5 percent as of June, 2009 , and did not face the liquidity problems confronted by many of its endowment brethren, Wake Forest is now switching gears and has brought in an outsider to the endowment world to add guard rails to the portfolio, evaluating risk, portfolio construction and asset allocation afresh.
James Dunn is steeped in risk management, due diligence and portfolio theory. He was CIO of Wilshire Funds Management, the asset management arm of Wilshire Associates that manages about $52 billion, before moving from the West Coast to North Carolina in July of this year to take the Wake Forest post. He is now assessing the endowment fund in light of the huge losses incurred by universities and other investors in...