Home > News > Asset Management Culture > Carlos Rangel Tapped as CIO of W.K. Kellogg Foundation
Asset Management Culture

Carlos Rangel Tapped as CIO of W.K. Kellogg Foundation

He replaces Joel Wittenberg, who has retired after 11 years with the organization.
By Michael Katz

Carlos Rangel

Carlos Rangel has been named vice president and CIO of the $8 billion W.K. Kellogg Foundation (WKKF), effective today. Rangel, who will also serve as a member of the executive council and report to president and CEO La June Montgomery Tabron, replaces Joel Wittenberg, who retired at the end of January after 11 years at the foundation, saying he would go into consulting.

Rangel, a member of CIO magazine’s Class of 2017 Forty Under Forty, joined WKKF as a portfolio manager in 2010 and was most recently director of investments. He will be responsible for the management and oversight of the foundation’s endowment and the W.K. Kellogg Foundation Trust investments, as well as investing the diversified portfolio to maintain its ability to support WKKF’s long-term mission. Rangel will also provide leadership for team execution and quality performance against allocation targets and shape research and analysis toward fact-based improvements to short- and long-term asset allocations.

“Carlos made a personal commitment many years ago to spend his career putting the financial markets to work for the benefit of society and understands that every dollar the foundation earns on our investments improves conditions for children,” Tabron said in statement. “He also has been a leader for WKKF toward broadening the adoption of racial equity within the financial sector and business community, while generating more dollars for grants.”

Prior to joining WKKF, Rangel worked for boutique investor Managed Assets Portfolios as a buy-side generalist analyst and focused mainly on small-and mid-cap technology stocks. He was responsible for idea generation, primary research, and financial analysis for each of the companies recommended.

Want the latest institutional investment industry
news and insights? Sign up for CIO newsletters.

In a 2017 interview with CIO, Rangel indicated a bias toward active management over passive investment, saying there was an ongoing “arms race” to consistently deliver excess returns net of fees.

“Passive investing still reflects a view of the world given the construction of passive benchmarks that overweight the largest names,” Rangel said. “You cannot just set it and forget it if you are investing passively.”

He also said he places a high priority on risk management tools and processes, which he said “have added a new dimension to our awareness with a quantifiable impact on our decisionmaking.”

Rangel has bachelor’s and a master’s degrees in finance from the University of Michigan-Dearborn, and he is certified as a chartered financial analyst (CFA), financial risk manager (FRM), chartered analyst of alternative investments (CAIA), and has a certificate in investment performance measurement (CIPM).

Related Stories:

2017 40under40 Carlos Rangel

WK Kellogg CIO Joel Wittenberg to Go into Consulting

Top 20 Endowment and Foundation CIOs

Tags: , , , , ,

Home > News > Risk > Ray Dalio Warns Janet Yellen About Perils of a Weaker Dollar
Risk

Ray Dalio Warns Janet Yellen About Perils of a Weaker Dollar

The hedge fund chief cautions the new Treasury secretary against complacency over the greenback’s continued role as the world’s reserve currency.
By Sarah Min


Ray Dalio hopes Treasury Secretary Janet Yellen will steer clear of many pitfalls. Among them? Trusting that the US dollar will remain the world’s reserve currency, a warning many investors have already been sounding after the dollar lost value this past year. 

“I think the United States has gotten used to being the world’s reserve currency, which meant that they think that whatever we can sell the rest of the world, the world will buy and we’re not subject to constraints or that dynamic, so that concerns me a bit,” Dalio told the Washington Post on Friday. 

According to one forecast, the dollar could fall as much as 20% this year, given that global investors anticipating an economic recovery do not feel the need to seek a safe haven, and because of the rise of China. Goldman Sachs has even advised investors to short the US dollar in favor of Australian and Canadian currencies.

Many challenges lie ahead for Yellen. She and Dalio have had their differences in the past, but the leader of Bridgewater Associates said the new Treasury secretary was “skilled” and “open-minded,” though she has entered a “very difficult situation.” 

For more stories like this, sign up for the CIO Alert newsletter.

As Washington mulls how to expedite a swift recovery, Yellen must help sell Congress on President Joe Biden’s $1.9 trillion stimulus program, which entails further increasing federal debt—all amid intensifying class warfare, a charged political atmosphere, and the rise of China as a world power, Dalio said. 

“And so the issue really, I think, is can we face those things in a skillful way and a bipartisan way so that we don’t do ourselves even more harm than the circumstances have brought us,” Dalio added. 

Dalio and Yellen have butted heads previously, particularly in 2015 when she was the Federal Reserve chair and boosted interest rates. The hedge fund leader and other investors staunchly opposed that move, arguing hiking rates too soon would slow economic growth.

“I do think that she might overemphasize the business cycle part of it,” Dalio commented. “In other words, when she tightened monetary policy, I think she was thinking that the traditional economy would have a higher level of inflation.” But later, he added,  “there was a readjustment in that thinking, which was appropriate.” Her successor at the Fed, Jerome Powell, reversed the rate increases. 

Related Stories: 

Dalio’s Warning to Yellen: Don’t Repeat 1937

Ray Dalio Sides with Chinese Regulators over Jack Ma

If You Think the Dollar Has Lost Value Now—Just Wait

Tags: , , , , , , ,

«