Monitoring Our Investments

Monitoring Our Investments

As the situation of COVID-19 change day by day, The Community Foundation is monitoring the performance of the community's endowment which like all economic activity and world markets is experiencing declines.

In consultation with our independent advisers from Colonial Consulting, we offer a few observations about the markets, our investment performance, and strategy:

While the performance of our portfolio is down, it is ahead of market benchmarks.

  • The Foundation's return through mid-March is down overall approximately 18.8% as compared to the world equity markets' loss of approximately 29%.
  • The Community Foundation’s current portfolio has several valuable characteristics to help aid against the market volatility.  First, it is well diversified and has a meaningful allocation to hedge funds and high quality bonds, which aids tremendously with the required liquidity to meet our financial obligations to the community without having to sell assets stocks into a panic or for prices that are not reflective of underlying value. Second, the framework and structure of the endowment has a fundamental premise for hiring managers that have differentiated models for investing in strong businesses that are reasonably proced, well-managed and able to weather economic storms. 

Given the way things are evolving, most managers are starting to discuss if we are headed into a recession.

  • For quite some time, (most recently due to plunging oil prices and COVID-19), we have noticed that prices have been moving in one direction (price momentum) with little regard for the fundamental value of investments. This seems to be at least partially related to the degree to which computers now dominate daily trading.  While this crisis in unprecedented, the Foundation has weathered these storms in the past and is committed to doing so with our community again now.  

We are and remain a long term investor.

  • The Community Foundation doesn't try to time the markets and has confidence in our approach and the managers, which have proven and demonstrated track record under economic conditions.
  • As a steward of the communities’ perpetual charitable capital, The Foundation sees the longer time frames as being far more likely to reflect the quality of an investment, and is positioned in the short to intermediate term to re-balance for the creation of that longer term opportunity.    
  • Prices can quickly drop, as they have been, but they can just as quickly go higher. The important point that guides our decisions is that capital markets are cyclical and as we have witnessed lately, subject to reversals in fortune which can be quite sudden and powerful.
  •  We will continue to be your diligent and patient endowment partner, and look forward to providing updates on a periodic basis as this crisis unfolds.



70 Audubon Street
New Haven, CT 06510



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