“Prudence” fails Hong Kong art hub’s investments

The Hong Kong endowment fund for a cultural development project, the West Kowloon Cultural District Authority, has squandered its HK$26.1 billion ($2.8 billion) endowment because of excessive risk aversion. It’s worth noting this example: Many institutional investors around the region should note the consequences of obsessing over short-term risk and the impact of poor governance on investments. The project, which was begun in 1998 and which saw the Authority established in 2006…