Cambridge Associates

Last updated
Cambridge Associates LLC
Company type Private
Industry Financial services
Founded1973;51 years ago (1973)
Founders Hunter Lewis,
James Bailey
HeadquartersBoston, Massachusetts, U.S.
Key people
David Druley
(CEO)
Products Asset management, investment management
AUM US$67 billion (May 2023)
Total assets US$548 billion(under advisement ) (May 2023)
Number of employees
1,387
Website cambridgeassociates.com

Cambridge Associates is a privately held investment firm based in the United States. [1] It provides investment portfolio management and advisory services to institutional investors, including foundations and endowments, pensions, private clients, and corporate and government entities. [2]

Contents

History

Cambridge Associates was founded by Harvard College roommates Hunter Lewis and James Bailey in 1973. [3]

The firm initially provided investment research to endowments and foundations, and over time, it expanded its services to investment consulting and portfolio management for many institutional investors, such as endowments, foundations and pensions. [4] Cambridge Associates’ CEO, David Druley, was appointed in 2016 after serving as head of global investments. He succeeded Sandra A. Urie, who served as Chairman and CEO for 16 years. [5]

On February 3, 2022, it was announced that Cambridge Associates will be taking 115,000 square feet in the Winthrop Center tower for its new headquarters later in the year. [6]

Business

Cambridge Associates has, as of mid-2018, $389 billion in assets under advisement, of which roughly $30 billion is managed for client on a discretionary basis—a 50% increase from 2017. The firm has moved further into the business of investing on behalf of clients in addition to its traditional business of largely recommending investment managers to institutions and wealthy individuals and families.

The institutions that outsource the management of their investment portfolio to Cambridge Associates include the American Red Cross, for its pension and endowment; [7] the University of Louisiana at Lafayette Foundation, [8] and the endowment of Lewis & Clark College. [9]

The Wall Street Journal , Bloomberg and Reuters utilize Cambridge Associates research. [10] [11]

In 2017, the firm laid off 3% of its workforce in the investment staff, performance reporting and data collection areas in order to more closely focus on its portfolio management operations. [12]

Investment services

It offers investment consulting, outsourced portfolio solutions,[ clarification needed ] research services and tools, and performance monitoring across various asset classes. The company also provides services in areas, such as investment objectives, asset allocation, investment management structures and guidelines, investment manager selection and evaluation, and performance monitoring. [13]

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References

  1. Leanna Orr (May 16, 2018). "Cambridge Associates Sells 20% of Firm to Client". Institutional Investor .
  2. Dawn Lim (May 17, 2018). "Cambridge Associates Adds to Its Family of Backers". The Wall Street Journal .
  3. Juliet Chung (March 14, 2017). "Cambridge, a $142 Billion Wall Street Gatekeeper, Cuts Staff". The Wall Street Journal .
  4. Alyson Velati (May 17, 2018). "Cambridge Grows OCIO Assets 50% in Year Since Pivot from Consulting". FundFire.
  5. "Cambridge Associates Names Druley Chairman and CEO". FINalternatives. May 17, 2018.
  6. Boston Business Journal:February 3rd 2022:Cambridge Associates chooses Winthrop Center Tower for its new headquarters
  7. Amy Whyte (June 7, 2018). "American Red Cross Outsources Investments to Cambridge Associates". Institutional Investor .
  8. Preeti Singh (May 23, 2018). "UL Lafayette Foundation outsources investments to Cambridge". Buyouts.
  9. Katrina Lewis (July 25, 2018). "Cambridge Associates Adds Oregon Endowment in Asset Manager Push". Bloomberg.
  10. Canada, Hilary (4 August 2015). "Energy Losses Cut Into Private Equity Returns in 2014". The Wall Street Journal. Retrieved 24 November 2015.
  11. Benoit, David (24 November 2015). "Activist Investors Display a Lighter Touch". The Wall Street Journal. Retrieved 26 November 2015.
  12. Comtois, James (20 March 2017). "Mercer not only consultant changing with the times". Pensions & Investments. Crain Communications Inc. Retrieved 19 December 2017.
  13. "Cambridge Associates LLC: Private Company Information - Businessweek". www.bloomberg.com. Retrieved 2016-04-04.