[gocard14]

1699914526[/url]']
https://smc.stanford.edu/our-team/

The Stanford Management Company has 59 employees.  That seems bloated to me.  It's not like these people are trading stock options and commodity futures on a daily basis.  What do they do all day?

And most of the actual investment decisions are made by external partners; not SMC.

https://smc.stanford.edu/our-partners/

Analyze deals and options?

They might look at and vet 20 investments before making one. Then make investments, term sheets, lawyers, etc. That's a lot of leg work, and expensive. Which is why active management always has a hurdle to overcome to beat passive.

For individuals, passive investing makes way more sense. For institutions with massive endowments, active allows for more options, greater diversification; and possibly higher returns at the expense of higher costs and reduced liquidity.

[gocard14]

1699914526[/url]']
https://smc.stanford.edu/our-team/

The Stanford Management Company has 59 employees.  That seems bloated to me.  It's not like these people are trading stock options and commodity futures on a daily basis.  What do they do all day?

And most of the actual investment decisions are made by external partners; not SMC.

https://smc.stanford.edu/our-partners/

Analyze deals and options?

They might look at and vet 20 investments before making one. Then make investments, term sheets, lawyers, etc. That's a lot of leg work, and expensive. Which is why active management always has a hurdle to overcome to beat passive.

For individuals, passive investing makes way more sense. For institutions with massive endowments, active allows for more options, greater diversification; and possibly higher returns at the expense of higher costs and reduced liquidity.