Jang Dong-hun’s Journey to Becoming POBA’s Chief Investment Officer: A Story of Innovation and Success

Title: Jang Dong-hun’s Journey: From Equities to Alternatives

In 2015, Jang Dong-hun embarked on a new chapter in his career as the chief investment officer at Korea’s Public Officials Benefit Association (POBA), one of the country’s largest pension funds. This opportunity presented both excitement and challenges for Jang, who primarily had a background in public equities.

To prepare for his new role, Jang turned to the book ‘Pioneering Portfolio Management’ by David Swensen, the legendary Yale endowment fund manager. This book provided Jang with the inspiration and education he needed to construct a portfolio that extended beyond equities. By combining his traditional asset class knowledge with Swensen’s insights, Jang was able to confidently generate returns for POBA’s portfolio.

Over the years, Jang’s strategic decisions and dedication to learning paid off. By the end of 2021, more than 72% of POBA’s portfolio was invested in alternative investments, a significant shift from when Jang first took on the role. The pension fund’s returns also saw a substantial increase, from 3.7% in 2011-2015 to 10.9% in 2021.

Swensen’s book emphasized the importance of diversification, active management, and patience in investing, principles that Jang successfully applied to POBA’s portfolio. Despite the changing investment landscape, Swensen’s teachings on private markets remain relevant and valuable for asset owner investment professionals.

Jang’s journey from equities to alternatives showcases the power of continuous learning, strategic decision-making, and effective governance in achieving investment success. As Jang continues to make an impact in the financial industry, his story serves as an inspiration for aspiring investment professionals looking to navigate the complexities of the market.