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Capital Allocators · Monday, July 27, 2026

The Importance of Diversification in Endowment Management

Michelle Knudsen, CIO of the NYU endowment, emphasized the importance of diversification as a key lesson learned during her nine years at the Mellon Foundation. She stated that the foundation's diversified portfolio helped mitigate risk and generate strong long-term returns, a principle she has carried forward to NYU.

personMichelle KnudsencompanyMellon FoundationcompanyNYU

The tape

3 quotes
The biggest lesson I learned at Mellon was the importance of diversification.
Michelle Knudsen
The foundation had a very diversified portfolio, and I saw firsthand how that helped to mitigate risk and to generate strong returns over the long term.
Michelle Knudsen
I believe that diversification is key to achieving long-term success in portfolio management, and I'm always looking for ways to further diversify the portfolio while still maintaining a strong focus on risk management.
Michelle Knudsen
Heard on Capital Allocators — “Rebuilding the NYU Endowment – Michelle Knudsen (EP.513), published Monday, July 27, 2026. Heardvine summarizes and quotes with attribution and timestamps, and links to the original everywhere.
Transcribed via Gemini audio transcription · $0.07
The Importance of Diversification in Endowment Management — Heardvine