Hirtle Callaghan CEO Summarizes Lessons Learned From Waning Financial Crisis

WEST CONSHOHOCKEN, Pa., Sept. 23 /PRNewswire/ -- In a paper scheduled to be released to clients on Monday, September 27, 2010 at 12 Noon, Jonathan Hirtle, CEO of Hirtle, Callaghan & Co., Chief Investment Officers and one of the nation's largest privately held investment firms, summarizes the lessons learned from the 2008 financial crisis.

In his quarterly assessment of the investing landscape, Hirtle points out the following:

1. The single most important lesson from the 2008 financial crisis centers around differentiating need for safety capital (as individuals or enterprises define it) from investment capital - where risk is required to achieve real growth.  
2. Investing is always a challenge.  We live in an uncertain world and we always have.  Danger looks far less significant in retrospect, but we have lived through some tremendously difficult and dangerous periods including world wars, presidential assassinations, devastating terrorist attacks and, of course, decades of political infighting and ineffective government.  Real investors look past the headlines to acquire future cash streams.
3. Speculators are not investors.  "Speculative investing" is an oxymoron.  Speculators operate with a completely different sense of value and time horizon.  Consequently, while speculators can create mayhem in the capital markets from time to time, they also create opportunities for real investors.
4. Today, there are two significant price dislocations in the marketplace.  Blue chip, global growth companies are substantially underpriced and US Treasury notes are substantially overpriced (be careful with municipal bonds).  
5. Do not shy away from private equity just because it is less liquid.  Logic tells us that the marketplace is currently paying a premium for liquidity and we want to harvest that liquidity premium when it is high.

About Hirtle Callaghan

With $20 billion under discretion and recognition as a Top 20 Wealth Manager, Hirtle, Callaghan & Co. manages complete, globally-diversified, multi-manager investment programs emphasizing the significance of strategy and risk management at every step of the process.

Now in its 23rd year, Hirtle Callaghan sets a new investment standard – complete objectivity, the insight and discipline of a professional Chief Investment Officer supported by a fully staffed investment department and high-touch professional service – and approach previously available to only the largest, multi-billion dollar family groups and institutions.

Founded in 1988, Hirtle Callaghan's clients include family groups, endowments, foundations and pension funds.

A complete copy of Mr. Hirtle's paper, entitled Taking Stock – Fall 2010, is available to the media effective immediately by clicking here. Questions for Mr. Hirtle may be addressed to [email protected].

SOURCE Hirtle, Callaghan & Co.