Stefan Strein was named vice president and chief investment officer of the $2.7 billion Annie E. Casey Foundation, Baltimore.
Mr. Strein replaces Burton Sonenstein, who will retire in December.
Mr. Strein was managing director of investments at the foundation.
In an interview, Patrick McCarthy, foundation president and CEO, praised Mr. Sonenstein for diversifying the foundation's portfolio and delivering “outstanding results” even in the most recent volatile markets.
“We were heavily in traditional equity investments, and Burt and the investment team helped us take on broader and more diversified investments,” Mr. McCarthy said. Mr. Sonenstein also developed the foundation's social investment program, which devotes 5% of the foundation's assets to loans and venture equities related to the foundation's mission of helping children in America.
Mr. Strein, who started in 2005 as manager of alternative investments, developed portfolios for private capital strategies and hedge funds that now comprise 40% of endowment assets.
The foundation is looking to reorganize its investment team to replace Mr. Strein and also consider changes to its investment asset allocation, Mr. McCarthy said. “We constantly revisit our overall allocation, but we don't see any immediate need,” he said.
The investment portfolio earned a compound annualized 7% in the 10 years ended Dec. 31, 2011.