Scott Malpass
SKIPNotre Dame Endowment (retired 2020)
Legendary Notre Dame endowment CIO who grew $425M to $18B over 32 years with exceptional integrity, but his diversified institutional approach offers minimal direct applicability to our concentrated equity strategy.
Endowment / Institutional CIOs
Score Breakdown
Investment Philosophy & Portfolio Style
Philosophy
Malpass adopted the Yale Model's core principles but with notable adaptations: (1) Heavy allocation to alternative assets, with a particular emphasis on venture capital and private equity, which drove much of Notre Dame's outperformance. (2) Manager selection as the key to alpha -- Malpass built deep, trust-based relationships with top-tier managers and was known for his loyalty and long-term partnerships. (3) Willingness to invest in emerging and frontier markets more aggressively than some peers. (4) Mission alignment -- as a Catholic university, Notre Dame's endowment considered values-based constraints (though not as restrictive as some religious endowments). (5) Contrarian instinct -- Malpass was willing to invest in unpopular asset classes and geographies when prices were attractive. (6) Long-term, patient orientation -- he viewed the endowment as a perpetual vehicle and invested accordingly. (7) He was an early adopter of the endowment model among non-Ivy institutions, demonstrating that the approach could work at smaller-scale endowments.
Portfolio Style
Diversified institutional portfolio following the endowment model. Notre Dame's allocation under Malpass was heavily weighted toward alternatives: roughly 30-40% private equity/venture capital, 15-20% hedge funds, 10-15% real assets, with the balance in public equities and fixed income. The VC allocation was particularly large and productive. The portfolio was managed through relationships with external managers, with a small but highly effective internal team focused on manager selection and asset allocation. Malpass was known for getting into top-tier VC and PE funds that were difficult to access, leveraging Notre Dame's alumni network and his personal relationships. Geographic diversification was broader than many peers, with meaningful emerging market exposure.
Background
Scott Malpass served as the Chief Investment Officer of the University of Notre Dame's endowment for 32 years (1988-2020), one of the longest tenures of any major endowment CIO. He joined Notre Dame's investment office in 1988 at age 26, making him one of the youngest CIOs in the industry at the time. He holds an MBA from the University of Notre Dame. Under his leadership, Notre Dame's endowment grew from approximately $425 million to over $18 billion -- a roughly 42x increase over 32 years. He also served as Vice President for Finance at Notre Dame, giving him broader institutional responsibility. Malpass was deeply influenced by Swensen's Yale Model but adapted it with his own distinctive approach. He is considered a Catholic university's answer to Swensen -- mission-driven, long-term oriented, and fiercely devoted to the institution. He retired in 2020 after being diagnosed with ALS (Lou Gehrig's disease), and he passed away in 2023.
Track Record
Excellent -- one of the best among major endowments. Under Malpass's 32-year tenure, Notre Dame's endowment compounded at approximately 12-13% annualized, among the highest of any large endowment over that period. Key milestones: the endowment grew from $425M (1988) to $18.4B (2020), a 42x increase. FY2020 return was approximately 8.9%, FY2019 approximately 8.7%, and the 10-year annualized return at his retirement was approximately 10-11%. The 20-year return was in the 11-12% range. Notably, Notre Dame navigated the 2008 financial crisis better than many peers (though it still suffered significant losses). The consistent, above-benchmark performance over three decades is remarkable and suggests genuine investment skill. After his retirement, the endowment has continued to perform well under his successors, suggesting the systems and relationships he built have lasting value.
Notable Holdings
Like other endowment CIOs, Malpass's 'holdings' were allocations to investment managers rather than individual stocks. Notre Dame was an early and significant investor in many top-tier venture capital and private equity funds. The endowment reportedly had allocations to firms like Sequoia Capital, Andreessen Horowitz, and other premier VC funds. Malpass leveraged the Notre Dame alumni network (which includes many successful entrepreneurs and executives) to build relationships that gave the endowment access to capacity-constrained managers. The endowment also held meaningful positions in real estate, natural resources, and international equities.
Transparency & Integrity
Transparency(Score: 3/10)
Low-to-moderate. Notre Dame published annual endowment returns and general information about its investment approach. Malpass occasionally spoke at conferences and gave interviews about his investment philosophy and the endowment model. He was more accessible than some peers but far less public than Swensen (no books, no widely circulated writings). Specific asset allocations, manager names, and portfolio details were not publicly disclosed. As a private university, Notre Dame was not subject to public disclosure requirements. The relatively small investment team meant fewer leaks and less public attention compared to Harvard or Yale.
Integrity(Score: 10/10)
Exceptionally high. Malpass devoted his entire career to Notre Dame, turning down more lucrative opportunities on Wall Street. He was paid well by university standards but modestly by endowment CIO standards, and he remained committed to the university's Catholic mission throughout. He was universally respected in the endowment community for his ethical standards, loyalty, and genuine care for the institution. He continued working as long as he could despite his ALS diagnosis. His 32-year tenure at a single institution speaks to character and commitment. No known ethical controversies, conflicts of interest, or scandals. He built a culture of integrity within the investment office that has survived his departure.
Relevance to Us
Low relevance in terms of direct applicability, but moderate as intellectual inspiration. Malpass demonstrated that patient, long-term, relationship-driven investing can produce extraordinary returns over decades. His 42x growth of the endowment over 32 years is a testament to the power of compounding with skill. His contrarian instinct and willingness to invest in unpopular areas when prices are attractive aligns with our floor-price philosophy at a high level. However, his actual approach -- diversified asset allocation across dozens of external managers -- is completely different from our concentrated stock-picking. He does not provide stock ideas, analysis frameworks, or public writings that would be useful for our process. Best appreciated as a role model for institutional investing excellence.