Chief Investment Officer

Chief Investment Officer
Department:  Vice President for Administration and Treasurer
Date:  02/08/2012

POSITION AND CANDIDATE SPECIFICATION

COLBY COLLEGE
CHIEF INVESTMENT OFFICER
 

 


POSITION SPECIFICATION

 

Overview of Colby College

 

Colby College in Waterville, Maine, is one of the nation’s oldest and best independent colleges of liberal arts. Colby is known for its intellectual rigor, its supportive campus community and atmosphere, and its global reach. A residential four-year college with more than 1,800 students, Colby is a national leader in research- and project-based undergraduate learning. The quality of the faculty is recognized as the College's greatest asset, and the depth of student-faculty interaction and collaboration is exceptional. More than two thirds of Colby's undergraduates study abroad during their college career, and the international makeup in the student body continues to expand, with more than 75 countries now represented. Colby’s campus, known as Mayflower Hill, is one of the nation’s most beautiful.

 

History

 

Chartered in 1813 as the Maine Literary and Theological Institution, Colby is the 12th-oldest independent liberal arts college in the United States.  In 1871 it became the first previously all-male college in New England to admit women, signaling its commitment to diversity and to access to higher education for all qualified students. During the late 1920s, Colby president Franklin Johnson conceived a plan to move the College from the banks of the Kennebec River to a new site on which the College could grow into its potential.  The citizens of Waterville participated in Colby’s fundraising efforts, and the city itself gave Colby its present campus on Mayflower Hill in exchange for the riverside site. Since 1937, more than 60 buildings have been constructed on the Mayflower Hill campus, and in 2004, the College developed the Colby Green, a district created to accommodate academic and administrative buildings.

 

Mission and Values

 

Colby’s mission is to prepare students for their future by giving them an array of intellectual tools and a broad acquaintance with human knowledge. As a result, Colby graduates are critical and imaginative thinkers. They are intellectually curious and aesthetically aware and capable of distinguishing fact from opinion. They are proficient writers and speakers, familiar with one or more scientific disciplines, knowledgeable about their own and other cultures, and prepared to respond flexibly to changing demands and paradigms. They are welcoming of diversity and compassionate toward others, they embrace opportunities to learn, and they contribute to the societies in which they live.

 

Colby stands for diversity; for respect for various lifestyles and beliefs; and for the protection of every individual against discrimination. In the classroom and outside, there is freedom to study, to think, to speak, to work, to learn, and to thrive in an environment that insists upon both civility and the free and open exchange of ideas and views. The behavior of individuals may often affect the rights and well being of others; therefore all members of the campus community are responsible for fostering an environment in which teaching, learning, and research flourish.

 

Geography and Campus

 

Quality of place, quality of work, and quality of life are hallmarks of Maine, and Colby adds superlative liberal arts education to the state’s portfolio. Maine offers natural beauty, a spirit of independence, and a rich tradition of creative endeavor. Maine’s people have welcomed Colby students into their communities for almost two centuries, and the Colby population responds—through volunteerism, civic engagement, and a lifelong affinity for Maine. Colbyʹs 714acre campus is hailed as one of the most attractive in the country.  It is located 20 minutes from the state capital and an hour north of Portland or south of Bangor.  Most of the campus, including the 128acre Perkins Arboretum, is a Maine Wildlife Management Area.  The breathtaking Belgrade Lakes region is within easy commuting distance of the College, and the mountains and coast are nearby.

 

Position Summary

 

Colby’s endowment has grown significantly over the years, with assets totaling $580 million as of December 2011. The endowment is critical to the mission of the college. Last year, the portfolio contributed $21.8 million to the institution’s operating revenues (16 percent of gross operating revenues). The endowment is at an exciting juncture in terms of size, diversification and contribution to the College. Due to the upcoming retirement of the College’s long-time director of investments, Colby seeks to recruit a new Associate Vice President and Chief Investment Officer (CIO).

 

The CIO has primary responsibility for investment policy, asset allocation, rebalancing, manager evaluation, consultant relationships, board communications, and investment reporting. In directing the investment function, the CIO will demonstrate leadership and initiative, be collaborative yet decisive, and exercise excellent communication skills. He/she will bring breadth of knowledge across asset classes and a well-developed understanding of portfolio construction, risk management and the capital markets.

 

The CIO will supervise a staff of two, manage all relationships with outside investment managers (as well as any consultants, legal counsel, and service providers) and work closely with the Investment Committee of the Board of Trustees. Working with the vice president Administration and the Investment Committee, the new CIO will have the opportunity to develop a long-term vision for the investment office, hiring for a currently vacant position and planning for anticipated new resources over the next five years.

 

The College’s Investment Committee is comprised of 13 members, each with strong perspective on the markets and on investing. The committee will remain active, particularly in the early period when the new CIO will be building credibility and a trusting relationship with this key constituency.

 

Colby’s portfolio is structured around high-quality managers with proven track records, particularly in alternative investments, and long-standing relationships with the College. The new CIO will have the opportunity to build on a strong foundation of managers while also working with the Investment Committee to shape the portfolio going forward.

The CIO is a key member of the College’s administrative management team and, as such, the successful candidate will have a deep understanding of liberal arts education and develop a strong connection to the Colby community.  The position is currently based on the campus in Waterville, Maine.  Alternatively, the CIO may establish and work from an office in Portland, Maine, while also working regularly from the Colby campus with current office staff.

 

The endowment’s current asset allocation is as follows: 

 

Asset Class

Percentage of Portfolio

Public Investments

 

Hedge Funds

International Equity

          

           

             27.2%

             15.2%

Cash and Fixed Income

             10.7%

Domestic Equity

Real Estate

Hard Assets  

             8.1%

               7.5%

               2.9%

 

Private Investments

 

 

Venture Capital

Private Equity Buyout

Hard Assets

           16.2%

               9.6%

               2.6%

 

Total

           100.0%



 

 Key Relationships

 

Reports to:                             Douglas Terp, Vice President for Administration & Treasurer

 

Oversees:                              Pam Leo, Assistant Director of Investments

                                               Investment Analyst (to be hired)

 

Other key relationships:         William D. Adams, President

Scott Jones, Assistant Vice President for Financial Planning

Ruben Rivera, Controller

 

                                              Investment Committee of the Board of Trustees:

 

William Oates ’65 (Chair), Founding Partner, Northeast Investment Management

Harry Krensky ’85 (Vice Chair), Founder and Managing Partner, Discovery Americas Capital Partners  

William Alfond ’72, Former Vice President, Dexter Shoe Company and Part Owner, Boston Red Sox

Leslie Biddle ‘89, Retired Partner, Goldman Sachs & Co.

Robert Diamond ’73, Chief Executive, Barclays PLC

William Goldfarb ’68, Principal, HRW Resources

Michael Gordon ’66, Co-Founder and Chief Operating Officer, Angelo Gordon & Co.

Todd Halloran ’84, Partner, Freeman Spogli & Co.

Seth Lawry, Managing Director, Thomas H. Lee Partners

Paula Crane Lunder, Community Leader

William Montgoris, Retired Chief Operating Officer, Bear Stearns, Inc.

                                               David Pulver ’63, President, Cornerstone Capital Inc.

Dilan Siritunga ’92, Managing Director, Atlas Capital

Paul Spillane ’79, Business Development Executive, Terra Firma

 

                                               Max Senter, Consultant, Cambridge Associates


Major Responsibilities

                                  

·        Provide leadership, expertise, and coordination of investment policy development, portfolio management, manager evaluation, and reporting.

 

·        Manage a $580 million investment portfolio (12/31/2011 estimate) that currently includes a large alternative investment component and more than 70 managers, 90 investment products, and 150 investment vehicles.

 

·        Establish, review, recommend, and modify strategic asset allocation and tactical adjustments to the portfolio.

 

·        Lead analyses of investment objectives, asset allocation, investment performance, and ethical investment policy.  Monitor and evaluate portfolio objectives, risk parameters, performance benchmarks and asset allocation.

 

·        Lead evaluation of existing and potential new investment managers for all asset classes through manager meetings, portfolio analysis, and reference checks. Recommend addition and/or elimination of manager relationships.

 

·        Manage approval and diligence process for investment managers, including regular performance analysis and reporting.

 

·        Coordinate work of Investment Committee and subcommittees (Marketable Securities, Private Equity, Real Estate, Hedge Funds, and Cash).

 

·        Lead preparation and presentation of analyses, reports, and recommendations to the administration, the subcommittees, and the Investment Committee.

 

·        Oversee custodial relationships, preparation of investment transaction entries, and regular reconciliations of all investment related accounts.

 

·        Monitor and recommend asset allocation and manager selection for Pooled Income Funds and Charitable Remainder Trusts.

 

·        Manage institutional working capital – endowment, operating, plant, and other – to meet ongoing liquidity needs.

 

·        Manage banking relationships, working closely with Financial Planning and Financial Services.

 

·        Create and maintain sophisticated analytical models to support endowment management.

 

·        Oversee preparation of endowment audit workpapers.

 

·        Recruit, develop, motivate, and manage professional staff and oversee investment office operations.

 

·        Create a positive, collaborative climate for the office and develop a culture of excellence, continuous improvement, and continuous learning.

 

·        Collaborate with other administrative staff in cross-functional analyses, projects, and processes.


 

CANDIDATE SPECIFICATION: KEY SELECTION CRITERIA

 

Ideal Experience

 

·        At least 10 years of relevant experience at an endowment, foundation, plan sponsor, family office, investment management company or consulting firm.

 

·        Strong investment track record.

 

·        Experience with equity-oriented investmentsand with alternative investment vehicles in particular.

·        Experience working within an environment of sophisticated colleagues and high standards for performance.

 

·        B.A./B.S. in a relevant field. M.B.A. or M.S. and C.F.A. are strongly desired.

 

Critical Competencies for Success

 

·        Asset allocation/manager selection: The CIO will make well supported recommendations on asset allocation policy, portfolio construction and on the selection of outside managers by employing outstanding analytical skills, market prowess, knowledge of various asset classes, and familiarity with different asset management firms. In doing so, he/she will demonstrate the ability to analyze risk and develop investment opportunities consistent with the College’s risk profile and long-term investment horizon.

 

·        Communication/information management: The CIO will partner effectively with colleagues within the administration and with members of the Investment Committee, exercising excellent communications skills, both written and verbal. He/she will ensure thorough communications regarding portfolio performance, individual managers, market trends and pricing. The CIO will demonstrate an ongoing understanding of information needs and provide necessary reports and documentation.

 

·        Team leadership: The Vice President for Administration and the Investment Committee will look to the CIO to provide leadership as a senior member of the College staff and to manage and develop the human resources of the Investment Office. He/she will mentor and guide the activities of the Assistant Director of Investments and an Investment Analyst to be hired.


Other Personal Characteristics

 

·        Unquestioned integrity and the highest ethical standards.

 

·        Imagination, creativity, and intellectual curiosity, and commitment to the mission of a liberal arts institution.

 

·        The presence to interact effectively with an experienced and involved Investment Committee and Board of Trustees, an accomplished administration, alumni and major donors.

 

·        A collegial attitude; able to thrive without personal glory; able to lead and direct in a consultative fashion. 

 

·        Courage of convictions and the ability to respectfully debate and to exercise diplomacy.

 

·        A sincere passion for the investment world and a built-in drive to achieve superior performance.

 

 

ADDITIONAL INFORMATION:

 

For more information about Colby, please visit www.colby.edu.

 APPLICATIONS AND NOMINATIONS

For best consideration, please send all nominations, inquiries and expressions of interest in confidence and electronically to:

Sarah Burley Reid
Spencer Stuart
277 Park Avenue, 32nd Floor
New York, NY 10172
T 212.336.0269
F 212.336.0295
sburleyreid@spencerstuart.com


Valerie R. Harper
Spencer Stuart
Two Stamford Plaza, 14th Floor
281 Tresser Boulevard
Stamford, CT 06901
T 203.326.3785
F 203.326.3717
vharper@spencerstuart.com

 

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Colby is an Equal Opportunity/Affirmative Action employer, committed to excellence

through diversity, and strongly encourages applications and nominations of

persons of color, women, and members of other underrepresented groups.

 
A review of applications will begin immediately and will continue until the position is filled.