Investing for Good: Southwestern Medical Foundation's Financial Strategy

How do we ensure that there is funding to advance medicine? It starts bold vision and is catalyzed by the generosity of donors, but sustaining support for the critical work of our health care leaders requires expertise in stewarding those donations within an investment portfolio. Sarah Fletcher, CFO of Southwestern Medical Foundation, leads a conversation with investment leaders David Haley and Andrew Zach as they explore how the Foundation responsibly manages $1.2 billion in total pooled assets. From navigating market volatility to aligning strategy with mission, this episode offers an inside look at the disciplined approach, long-term vision, and local stewardship driving impact in North Texas and beyond.

Listeners will gain insight into how a carefully structured governance model enables strategic oversight, how private capital and diversification have played a role in endowment growth, and how investment decisions are made with the Foundation’s enduring health care mission in mind.

Whether you're a donor, board member, or fellow steward of philanthropic assets, this conversation underscores the value of intentional, strategic investing.

 

Chapters:

00:00 – Teaser

00:31 – Introduction to the Episode and Guests

01:27 – The Role of the Foundation's Endowment

02:32 – Guest Backgrounds: David Haley and Andrew Zach

05:05 – Evolution of the Endowment and Growth Strategy

07:25 – Navigating Market Volatility

09:12 – The Shift from a 60/40 Portfolio

11:09 – Governance Without a CIO

13:52 – Lessons from Downturns and Rebalancing Strategy

15:40 – The Role of Alternative Asset Classes

18:09 – How Success is Measured: Benchmarks and Peer Groups

21:14 – Aligning Investment Strategy with Mission

22:53 – Principles Behind Manager Selection

24:06 – Local Insight: Carbon and Energy Investments

25:34 – Takeaways for Trustees and Donors

27:15 – Trends and Growth in North Texas

28:04 – AI, Biotech, and Innovation Opportunities

29:25 – Staying Disciplined Amid Investment Fads

31:00 – Site Visits and Hands-On Engagement

33:16 – Avoiding Investment Pitfalls: China and Risk

35:27 – Final Reflections and Key Takeaways

37:48 – Outro and Invitation to Subscribe

----------------------------------------

Episode Details:

Episode 6, Season 2

Host:
Sarah Fletcher | CFO, Southwestern Medical Foundation

Guests:
David C. Haley | President Emeritus of HBK Capital & Investment Committee Chair of Southwestern Medical Foundation

Andrew M. Zach | Sr. Vice President, FEG Investment Advisors

Producer: Dustin Magwire | Digital Media Senior Manager, Southwestern Medical Foundation

Videography: Aristoi Media - www.ianvanalan.com and Brazos Film & Video - www.brazosfilms.com

Disclaimer:

The Southwestern Medical Foundation Podcast is intended solely for educational purposes.  Nothing contained therein constitutes, nor should be interpreted as medical, healthcare, financial or legal advice. 

Southwestern Medical Foundation strives for accuracy in its publications, including the Podcast.  However, due to the nature of the topics discussed, there frequently is not a clear-cut “right answer.”  Consequently, Southwestern Medical Foundation cannot guarantee the accuracy or sufficiency of any information presented.

The views of the hosts and guests are their own and do not necessarily represent the views or opinions of their employers or affiliated organizations, nor Southwestern Medical Foundation, the University of Texas Southwestern Medical Center or the University of Texas System.  The inclusion of any guest or mention of any product or service does not constitute an endorsement thereof, nor of any company, employer, or organization with which the guest, product, or service is affiliated.