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Foundation & Endowment Money Magazine 11-30-2009
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Foundation & Endowment Money Magazine 11-30-2009


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Case wins Large Endowment of the Year award for an outstanding job managing risk in the endowment portfolio.

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Foundation & Endowment Money Magazine 11-30-2009

  1. 1. DECEMBER 2009 BUCKEYES EXAMINE DISTRESSED, REAL ASSETSVOL. XII, NO. 12 The Ohio State University is eyeing possible investments in distressedSMU Seeks Investment debt and real assets for its roughly $1.8 billion endowment. The BuckeyesDirector have not carved out a specific target but typically look to invest aroundSouthern Methodist University is $20 million per fund, explained CIO Jonathan Hook. The Columbus-searching for a director of investments based endowment is open to distressed debt trading and distressed-for-to help oversee its private investments. control investment strategies, as well as a wide variety of real assets, See story, page 2 including commodities, energy and farmland. Jonathan HookAt Press Time The school is keen on distressed opportunities because there are stillLebanese School Hires CIO 2 (continued on page 16)Investment Committees Overrate Performance 2 NUNAVUT PONDERS GLOBAL GROWTH MANDATE The C$1.1 billion Nunavut Trust is planning to review long-only equity investments in theSearches second quarter and could look for a global growth manager. The fund invests 21% in globalSouth Carolina Looks To equity but has been underweight for the past two years, said Andrew Campbell, ceo. Emerging Marts 4 One option is a quant manager because its other managers are fundamentally driven, saidOhio School Ponders Private Equity 4 Campbell. The size of the potential mandate has not yet been determined.Miami Dade Examines Commodities 5 The fund is interested in active management. It recently converted a Canadian fixed-Longwood Eyes Consultant 5 income mandate managed by Doherty & Associates to active from passive, said Campbell.People (continued on page 16)EnTrust Taps NEPC Consultant 6 Passport PlayWestfield Hires Marketer 6 INTERNATIONAL EQUITYMarketingCommonfund Launches Cash Strat 7 SEARCHES HEAT UPOttawa Shop Preps Portable Alpha 7 Nonprofits are turning an eye overseas as internationalMorgan Creek Starts Funds 8 equity search activity has increased by 42% over the past 12 months. There were 27 searches over the past year versus 19Departments for previous 12 months, according to FEMM sister databaseFund Focus: The Culver Academies 11 iisearches. Among those searching or pondering the playSearch Directory 14 now are the Wyoming State Treasurer’s Office (see story, (continued on page 16)COPYRIGHT NOTICE: No part of this publication may NONPROFITS EYE INDEXED EQUITYbe copied, photocopied or duplicated in any form or by Indexed equity has been gaining steam again following activeany means without Institutional Investor’s prior writtenconsent. Copying of this publication is in violation of the managers failing to deliver alpha over the past year. FEMMFederal Copyright Law (17 USC 101 et seq.). Violatorsmay be subject to criminal penalties as well as liability Contributing Reporter Joseph D’Allegro spoke with Carter Lyons, managingfor substantial monetary damages, including statutory director of Barclays Global Investors’ Americas Institutional Business; Anjum Hussain,damages up to $100,000 per infringement, costs andattorney’s fees. Copyright 2009 Institutional Investor, director of risk management at Case Western Reserve University; Patrick Burke, head of theInc. All rights reserved. ISSN # 1529-2355 nonprofit group at Vanguard; Bailey Bishop, senior portfolio manager at State Street GlobalFor information regarding subscription ratesand electronic licenses, please contact Dan Lalor at Advisors; and Jeff Pippin, v.p. for finance and administration at Pepperdine University.(212) 224-3045. (continued on page 12) Check during the week for breaking news and updates
  2. 2. Foundation & Endowment Money Management December 2009Lebanese School Taps CIOLebanese American University has hired David Grosner from Hewitt Associatesas its senior investment officer for its roughly $330 million endowment. Grosner EDITORIAL PUBLISHINGwas a principal and senior consultant at the firm and also co-chaired the TOM LAMONT GRAHAM CHITTYinvestment manager research group. The university’s main campus is in Beirut, Editor Publisher (44) 207 779 8798 STEVE MURRAYbut Grosner is based in the school’s New York offices. Grosner said he joined the Deputy Editor RONDA DIMASI Senior Marketing Managerschool because of the opportunity to establish the investment office. VERONICA BELITSKI (212) 224-3569 Executive Editor LAU’s hire follows the lead of another Middle Eastern education institution, (212) 224-3297 VINCENT YESENOSKY Senior Operations ManagerKing Abdullah University of Science and Technology. The new Saudi school MARK FARO (212) 224-3057 Managing Editorhired Gumersindo Oliveros, director of pension plan and endowments for the (212) 224-3813 DAVID SILVA Senior Fulfillment ManagerWorld Bank, to be cio of its roughly $10 billion endowment (FEMM, 3/30). ANDREA TOOCHIN (212) 224-3573 News Aggregator (212) 224-3153 SUBSCRIPTIONS/ ELECTRONIC LICENSESSMU Seeks Private Investments Director STANLEY WILSON Washington Bureau Chief (202) 393-0728 One year $2,695 (in Canada add $30 postage, others outside US add $75)Southern Methodist University is searching for a director of investments to help LOUIS POPE DAN LALOR Director of Sales (212) 224-3045oversee its private investments. The Dallas school has a roughly $1 billion IISearches Manager (212) 224-3211 STEVE MCDERMOTTendowment and is in the market following the departure of Jerry Polk, who left KIERON BLACK Account Executive (212) 224-3486 Sketch Artistto take a similar position at The Ohio State University earlier this fall. REPRINTS Further details could not be gleaned as calls to Mike Condon, cio at SMU, PRODUCTION DEWEY PALMIERI Reprint & Permission Managerwere not returned. Condon left the University of Arkansas Foundation about DANY PEÑA Director (212) 224-3675 dpalmieri@institutionalinvestor.comone year ago to take the top spot at SMU (FEMM, 11/24). He was at Arkansas DEBORAH ZAKENfor only about a year, and before that was the long-time cio of Georgia Tech. Manager CORPORATE MELISSA ENSMINGER, GARY MUELLERCondon joined SMU to replace the retiring Liz Williams, who was investment JAMES BAMBARA, DOUGLAS LEE Chairman & CEO Associateschief for the Mustangs since 1991. ALLISON ADAMS Group Publisher JENNY LO Web Production & Design Director STEVE KURTZ Chief Operating OfficerInvestment Committees Focus On ADVERTISING ADRIENNE BILLS ROBERT TONCHUK Director of Central FulfillmentPast Performance Associate Publisher (212) 224-3214 Customer Service: PO Box 5016, Brentwood, TN 37024-5016. PAT BERTUCCI Tel: 1-800-715-9195. Fax: 1-615-377-0525Nonprofit investment committees spend about 35% of each meeting reviewing Associate Publishers UK: 44 20 7779 8704 (212) 224-3890 Hong Kong: 852 2842 6910past performance, according to a recent survey by Vanguard. By contrast, 15% of E-mail: customerservice@iinews.comthe meeting is dedicated to manager selection and due diligence. “People are Editorial Offices: 225 Park Avenue South, New York, NY 10003.spending a larger percentage of their time [on matters] over which no one has Tel: (212) 224-3813 Email: mfaro@iinews.comcontrol,” noted Catherine Gordon, head of Vanguard Investment Advisory Foundation & Endowment MoneyServices. The study queried more than 100 committee members from nonprofits Management is a general circulation monthly. No statement in this issue is toas well as defined benefit and defined contribution plans. be construed as a recommendation to buy or sell securities or to provide Nonprofit committee members felt investment related decisions, such as hiring investment advice. Foundation & Endowmentand firing managers, were their most important function, followed by asset Money Management ©2009 Institutional Investor, Inc. ISSN # 1529-2355allocation. More than 80% of nonprofit committees play a role in the Copying prohibited without thehiring/firing process, versus 50% for defined benefit plans. This can be partially permission of the Publisher.explained by the fact that nonprofit committee members tend to have moreinvestment expertise, and thus feel they add value, said Gordon. Nonprofit committee members also indicated they define success byoutperforming market benchmarks. Vanguard was expecting more responsesindicating meeting spending goals, said Gordon. Tell Us What You Think!Questions? Comments? Criticisms? Do you have something to say about a story that appearedin FEMM ? Or is there information you’d like to see published? Whether you’re irate withyour boss, would like to discuss a new business strategy or crow about a big hire, give us acall. Managing Editor Mark Faro can be reached at (212) 224-3813 or ©Institutional Investor News 2009. Reproduction requires publisher’s prior permission.
  3. 3. A constantly changing world calls for a flexible, thematicinvestment approach to achieve real returns.Newton’s Global Real Return Strategy.At Newton, we identify forces of change around the world andwork to harness those changes in our holistically managedportfolios. Our flexible and opportunistic multi-asset approachaims to deliver attractive real returns regardless of the levelof inflation in the economy or the performance of peer groupsor indices. Newton’s Real Return Strategy transformschange into opportunity.Whos helping you?For more information, please contact:Ciarán Spillane, Head of North American Business(516) how you can profit from global thematic investing at This is a financial promotion and is not intended as investment advice. “Newton” refers to the following group of affiliated companies: Newton Investment Management Limited, Newton Capital Management Limited, Newton International Investment Management Limited, Newton Capital Management LLC and Newton Fund Managers (CI) Limited. Assets under management include assets managed by all of these companies except Newton Capital Management LLC, which provides marketing services in the U.S. for Newton Capital Management Limited. Except for Newton Capital Management LLC and Newton Capital Management Limited, none of the other Newton companies offer services in the U.S. Past performance is not a guide to future returns. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested. Newton Capital Management Limited is an investment management firm authorized and regulated in the United Kingdom by the Financial Services Authority in the conduct of investment business and is a wholly owned subsidiary of The Bank of New York Mellon Corporation. Registered in England no: 2675952. Newton Capital Management Limited is registered in the United States as an investment adviser under the Investment Advisers Act of 1940.
  4. 4. Foundation & Endowment Money Management December 2009SearchesGamecocks Eye Emerging Markets UCONN Ponders InternationalThe University of South Carolina Foundations is examining a Equity Boostpossible first-time allocation to emerging market equity for its The University of Connecticut Foundation is looking to$230 million portfolio. The Gamecocks are considering a 5% boost the international equity allocation for its roughly $250allocation and should decide on the move within the next three million portfolio. The Huskies’ long-only equity investmentsto four months, said Russell Meekins, cfo. South Carolina are split 2:1 U.S/International, and the Storrs, Conn.-basedalready invests 15% in international equity, which has some school wants to reverse that ratio, said Kevin Edwards,exposure to emerging markets, but this would be the first associate v.p. of treasury services. UCONN is consideringdedicated investment, he added. whether it wants active, passive or some combination of both The Columbia-based university is considering emerging approaches, he equity because it would provide further diversification to The move is being contemplated now because there are greaterthe portfolio, said Meekins. The school plans to rely on the growth opportunities outside the U.S., said Edwards. Specifically,recommendations of its consultant, Fund Evaluation Group, to a weaker dollar and increased manufacturing growth overseaswhom all manager inquiries should be directed, he explained. makes international equity more appealing, he explained. The Gamecocks also recently invested $10 million in a fixed-income investment managed by TCW. The move wasopportunistic, as the strategy invests mostly in mortgage-backed Wyoming Re-Starts Internationalsecurities, which are priced well given the market gyrations overthe past year, said Meekins. Equity Play The Wyoming State Treasurer’s Office, which oversees several public endowment funds such as the $7.5 billion PermanentOhio Uni Reviews Private Equity Fund, has re-commenced a $1 billion international equityOxford, Ohio-based Miami University is evaluating its private search. The state had been planning to issue a request forequity, venture capital and private real estate investments proposals earlier in the (FEMM, 5/25) but suspended the searchwithin its $337 million endowment. The RedHawks invest indefinitely in August (FEMM, 9/7). Last month it decided to15% in private investments but have halted new commitments go ahead with the search and issued a request for proposals thatwhile the university considers how to proceed following the was due Nov. 2. The delay was the result of internalmarket events of the past year, said Bruce Guiot, director of administrative matters, which have since been solved, saidinvestments and treasury services. “When [the environment] Michael Walden-Newman, cio.changes, you need to step back and reassess your thesis,” he Wyoming had been using Capital Guardian and Fisherexplained. Miami’s decision is in line with several other Investments for its international equity mandates. Theendowments that are putting the brakes on their private equity incumbents participated in the RFP process; the plan is to selectinvestment pace (FEMM, 11/2). finalists in the next few months. The state is considering Miami typically made new commitments each year but has whether it wants to select new managers, to retain themade none in 2009 because of a changing environment, in incumbents or to use a combination of both new andparticular private equity funds’ difficulty in obtaining leverage for incumbent firms, said Walden-Newman. Also understrategies, said Guiot. In particular, certain strategies have suffered consideration is whether it makes sense to use active, passive or amore due to the loss of leverage, such as mega buyout funds and combination of both approaches, he added.venture capital. “Do we want to be regular commitment makers Once the search is completed, the state plans to move ahead[just] because calendar has changed?” he asked. with a search for an enhanced large-cap index assignment worth The RedHawks have mostly used funds of funds to access roughly $250 million. Wyoming also remains keen on addingprivate investments, but one possibility under consideration is to more value-added real estate managers. That process is beinginvest directly. This would allow the school to target a specific coordinated by its consultant, R.V. Kuhns & Associates, whichstrategy, such as something with less leverage, whereas fund of has a real estate group in Chicago, said Walden-Newman.funds investments are broader and don’t allow the school to Wyoming already invests in two core real estate funds managedcustomize its exposure, Guiot said. Graystone Consulting advises by UBS and ING and in value-added portfolios managed bythe endowment. Heitman and TA Associates Realty.4 ©Institutional Investor News 2009. Reproduction requires publisher’s prior permission.
  5. 5. December 2009 Foundation & Endowment Money ManagementNorth Carolina School Chooses consists of a fund of hedge funds, but that investment is being liquidated, said Duncan. It is invested in a Russell fund ofBond Manager funds that is being shuttered, and the school plans to park theNorth Carolina Central University has selected Thompson, Siegel returned capital in Treasuries, she added. Part of its review will& Walmsley to manage a fixed-income assignment. The Durham- be to determine how it can redeploy into hedge funds,based school has a $15 million endowment, and the fixed-income explained Duncan.mandate will be roughly $1 million, said Deborah Lane, assistantvice chancellor for administration, finance, operations and project Miami Dade Ponders Commodities,management. NCCU is currently in the contract phase with themanager and hopes to have the Richmond, Va., firm begin Real Estatemanaging the money by Dec. 1, she added. Miami Dade College is examining maiden allocations to NCCU had issued a request for proposals for a bond manager commodities and real estate for its $75 million foundation.this summer (FEMM, 9/7). The search was the result of a The asset classes were suggested by Consulting Servicesdonation it received, which has been previously invested in short- Group at a recent board meeting, when it presented an assetterm fund managed by the State Treasurer’s office. allocation analysis, said E. H. Levering, senior vice provost for business affairs and cfo. The review was part of periodic due diligence, he added. Levering declined to specifyFlorida College To Review Portfolio allocation sizes but noted that managers typically handleFlorida College will review the asset allocation and manager mandates of $5-10 million.roster for its roughly $12 million endowment. The Temple The Miami school also has a $90 million endowment, forTerrace, Fla.-based school currently invests about 40% in fixed which Callan Associates serves as a consultant. Callan is alsoincome, 35% in equities and 25% in alternatives, said Doug reviewing that portfolio and will present its findings either at aNerland, development official. The board is planning to review meeting next quarter or sooner, said Levering.the portfolio as part of an annual process, and there could Miami Dade also recently terminated a small-cap managerpossibly be changes in the next several months, he added. at its September meeting due to underperformance, said Nerland declined to name the managers, but noted there Levering, declining to name the firm. The money has sincewas one active fixed-income manager, with the rest of the been invested in an exchange-traded fund. It has receivedbond exposure passive. The equity portfolio consists of recommendations for a replacement but has not yet taken anymandates run by two firms, while the alternatives slug is action, he noted.comprised of an older private equity investment and a multi-strategy fund that invests in several types of income-generatinginvestments, such as master limited partnerships. Florida New York College Taps MSSBCollege does not use a consultant. Cayuga County Community College Foundation has hired Morgan Stanley Smith Barney to manage its $10 million portfolio. The Auburn, N.Y., school had been usingLongwood Seeks Consultant Northwestern Mutual for the past four years, but decided toThe $40 million Longwood University Foundation is issue a request for proposals as part of periodic due diligence,reviewing its portfolio and conducting a search for a explained Jeff Hoffman, executive director. The move was notconsultant. The Farmville, Va.-based school has been using performance related, and Northwestern was invited to participateRussell Investments as a manager of managers to oversee its in the re-bid process, he added. Cayuga opted for Smith Barneyportfolio since 2001, but has decided to review other because the firm had a more active investment approach that haspossibilities for due diligence reasons, said Hazel Duncan, cfo. fared well in down markets, said Hoffman.It considering both the consultant and manager of manager Cayuga started the search process in February, and hadapproaches, where a firm manages the whole portfolio with planned to wrap up the search earlier. However, two days beforediscretionary authority, she added. Longwood has issued a the board could vote, Citigroup sold its remaining stake in Smithrequest for proposals, which is due Jan. 11. It plans to have the Barney to Morgan Stanley. “That was kind of a big change for uswinner begin work on July 1. to swallow,” said Hoffman. Cayuga now feels comfortable with Longwood is also reviewing the portfolio, which currently the Morgan Stanley transaction and recently inked a deal withhas a 60/40 equity/fixed-income split, with 10% of the equity Smith Barney, he added. The firm is slated to begin managingslug dedicated to alternatives. The alternatives allocation the mandate before the end of the year. To receive email alerts or online access, call 800-715-9195. 5
  6. 6. Foundation & Endowment Money Management December 2009 People NEPC Consultant Hops management and specializes in growth equity strategies. The firm is expected to complete its spin out from parent Boston To EnTrust Private by year-end. Bryan Schneider, a senior consultant in hedgefunds at NEPC, is leaving the firm to take a position in researchat EnTrust Capital. Schneider has been with NEPC for nine Opus Capital Hires Bizyears and focused on fund of hedge funds research. He referred Development Headcalls to President Mike Manning, who said that Schneider will Katrina Howard O’Leary has joined Opusnot be directly replaced, but the firm is appointing new leaders to Capital Management in Cincinnati as aits alternative research teams who will take on broader roles. Calls manager of business development and clientto EnTrust were not returned. relations. The position is new as the firm is At NEPC, Senior Consultant Neil Sheth, who joined the firm aiming to grow its assets and broaden clientin June, will now oversee the hedge fund research team, while relationships, she said. O’Leary will beSenior Consultant Eric Harnish will take on leadership of the working with all segments of the institutional Katrina Howardprivate equity group. Harnish also joined NEPC this summer. O’Leary market, as well as consultants.They will report to Partner Sean Gill, who oversees all of O’Leary was previously second v.p. atalternatives research, and work closely with senior strategists for Madison Square Investors (formerly New York Life Investmenthedge funds and private equity, Jaeson Dubrovay and Bill Management) in consultant relations and institutional businessMonagle, respectively. development. She left the firm in April. Opus has $800 million under management in a small-capLyxor Lands U.S. Marketer value strategy, which has $1.5 billion in capacity. The firm isLyxor Asset Management has hired Michael Bernstein to also incubating another equity strategy. O’Leary declinedspearhead marketing funds of hedge funds to U.S.-based to elaborate.institutional investors and consultants. He is based in New Yorkand reports to Lionel Erdely, Lyxor’s domestic ceo. A spokesman Nikko Picks U.S. Chieffor Lyxor said the new position was created to help focus on Nikko Asset Management has added to its global team by hiringbuilding stronger relationship with U.S. clients. Michael Herring to run its U.S. operation. Herring steps into Bernstein came from Financial Risk Management, a fund of the dual position of cfo and coo in New York. Nikko’s Europehedge funds firm, where he marketed hedge fund to North president Charles Beazley said the position has been created toAmerican clients. A spokesman for FRM did not return calls ensure the effective management of its U.S. business in light ofabout Bernstein’s replacement. the group’s growing assets under management. He added that the company’s business model will become increasingly complex asWestfield Capital Taps Marketer Nikko starts offering alternatives in the U.S.Boston-based Westfield Capital Management Co. has hired Beazley also indicated that the group’s performance has beenMatthew Coll as a v.p. in marketing and client service. He will resilient and that he holds a positive outlook for their near-termwork with institutional sales, client service and consultant performance. He is expecting new money will be derived fromrelations, focusing on the Midwest, said Morton Fearey, director EAFE mandates from large U.S. endowments and foundations,of marketing and client service. Coll’s position is new as the firm as well as Japanese and Asian expanding its institutional marketing ranks. The firm also Herring will work alongside Hiroko Tsujimura, cio andexpects to add an investment professional to its growth equity global head of alternative investments, and Christina Alfandary,team by year end, Fearey said. director of marketing, managing U.S. financial, administrative Prior to joining Westfield, Coll worked at Wellington and operational divisions. Herring has almost 20 years ofManagement in London. Over the past 12 years, he held a experience in asset and risk management positions. He joinsvariety of marketing and relationship management roles at the Nikko from Bay Harbour Management, where he was cfo andfirm both in Boston and overseas. head of risk management. He has also previously worked at Westfield has about $11 billion in assets under LaBranche & Co., Ernst and Young and JPMorgan.6 ©Institutional Investor News 2009. Reproduction requires publisher’s prior permission.
  7. 7. December 2009 Foundation & Endowment Money ManagementMarketingCommonfund Kicks Off Cash international and global equity manager research, are now working directly with institutional clients, said spokeswomanManagement Platform Nancy Malinowski. Consultants Michael Tadlock, Tony Brown,Commonfund has launched a new cash management platform to Eileen Kwei and Diana Greenstone left the firm to join Mercerreplace its Short Term Fund, a university favorite that was forced in September, so Fitzenhagen and DeForrest are, in part, takingto halt redemptions in autumn 2008. The Treasury Access over their duties.platform will consist of nine money market funds from three Matthew Schmelzer, who used to focus on domestic equityfund families, said Jon Speare, managing director of treasury research, has now expanded his role to include internationalproducts. The new platform has been under development for and global strategies, as Fitzenhagen has moved on. The firmmonths; the halt of the Short Term Fund left many universities is looking to hire a domestic equity research specialist toin a lurch because they were unable to tap their cash resources for replace Schmelzer.private equity capital calls and spending and had to resort toselling securities holdings (FEMM, 7/27). Commonfund has already signed on two funds from State Ottawa Firm Readies PortableStreet Global Advisors for the platform, and expects to have Alpha Stratan agreement in place with a second fund family in December, Ottawa-based Mountjoy Capital is readying a portable alphasaid Speare. strategy that it is pitching to institutions, including endowments The firm is pitching the platform to many of the Short Term and foundations. The firm is expecting three allocations fromFund investors. “The Short Term Fund was [a single] solution; institutional investors—portable alpha and traditional fund ofthis is built so you can tailor it to what an organization wants for hedge funds—to be funded for a total of $1.5 billion over theliquidity management,” he added. Thus far, Commonfund has next few months, said Rene Levesque, founder.four accounts on the platform, including the University of Portable alpha has taken a beating over the past year, withAlaska. The school had been an investor in the Short Term Fund. many institutions souring on the concept after getting burned. Levesque thinks the problem was the underlying hedge fundsCallan Splits Research Chief Role using too much beta, said Levesque. “It was leveraged beta,” he explained. Those investments were constructed by consultingCallan Associates has named Inga Sweet and Kelly Cliff as co- firms that used the wrong criteria to build a portfolio, chasingleads of its Global Manager Research Group, splitting theposition that was previously held by Greg DeForrest. DeForresthas moved to Fund Sponsor Consulting at Callan and is now a For More Benefitssenior v.p. and investment consultant. Both Sweet and Cliff will keep their present jobs. Cliff is cio Visit Our Web Siteof public markets and the firm’s Trust Advisory Group whileSweet manages the firm’s Published Research Group. Both are • Daily breaking newsalso veterans of the Global Manager Research Group. • News of foundations and endowments seeking managers A spokeswoman emphasized that cost saving considerationsdid not enter into the decision making process. DeForrest’s job • Weekly and month charts of search activity and mandateswas split between Cliff and Sweet to allow for more focused • People moves at foundations, endowments and managerscoverage of the different aspects of manager research, Sweet • Nonprofit investment trendssaid. Cliff will concentrate on big picture issues such as researchphilosophy, investment strategies and trends. Sweet will focus • Fund Focus: profiles of foundations and endowmentson the operational aspects of research, coordinate manager • Asset Class: Q&As examining asset classessearch work flow and oversee quantitative and qualitative • Access to a virtual archive of past issuesanalysis. Most consulting firms have one person overseeing allof manager research. Go online and take advantage of web access to FEMM. The changes in the manager research group are part of a To set up your subscriber password, please contact us atbroader re-shuffling following the departures of several field or at 1-800-715-9195.consultants. DeForrest and Lin Fitzenhagen, who oversaw To receive email alerts or online access, call 800-715-9195. 7
  8. 8. Foundation & Endowment Money Management December 2009Marketing (cont’d)top quartile hedge fund managers, said Levesque. By contrast, strategy. He joined Amaranth in 2003 and was the firm’sMountjoy’s strategy, which can be employed as a portable alpha number two in Toronto (he traded equities and credit, ratheror straight fund of funds play, is designed to work irrespective of than commodities—the latter was responsible for the firm’smarket conditions without a long-equity bias, he noted. downfall). Before Amaranth, he worked in merchant banking Marketing portable alpha has not been easy because many and private equity.investors that faired poorly still rely on the same consultants tofix the aftermath. “Those who got burned in portable alpha areturning to them for more help,” said Levesque. “It’s like the Morgan Creek Rolls Out Funds Morgan Creek Capital Management, whichmachine is broken, so let’s put some tape on it,” he quipped. is run by former University of North Mountjoy is employing a marketing technique that relies on Carolina CIO Mark Yusko, launched a creditexisting investor referrals. Existing clients that refer a new client fund and an Asian private equity offering.receive a discount on fees as long as the newcomer stays invested. The credit offering comes as the firm isThe break equals 25% of the new client’s fees, thus rewarding making a push into the area, following itsinvestors for recommending the largest possible prospects, hiring earlier this year of Sam DeRosa-Farag,explained Levesque. Mike Hennesy president of credit hedge fund firm Ore Hill Partners (FEMM, 5/25). The strategy will focus on various creditGoldman/Amaranth Veteran opportunities, including distressed debt, said Mike Hennessy, managing director. It’s attractive now because credit strategies canSets Up Shop produce equity-like returns with less risk due to the securities’Michael Ruscetta, former co-head of Goldman Sachs’ special- higher positions in the capital structure, he added.situations group in Toronto and senior staffer at Amaranth There are also several opportunities in Asia, particularly inAdvisors, has founded RCM Partners and launched its maiden China, said Hennessy. There are opportunities to purchasehedge fund. The RCM Special Situations Fund will take a quality companies for three to five times EBIDTA, he said.fundamental bottom-up approach to value- and event-driven Morgan Creek has offices in Beijing and Hong Kong, whichinvestments such as bridge financing and distressed loans. The gives it an edge to investing in the region, said debuted in late September with under CAD15 million;Ruscetta said the strategy has the potential to grow to betweenCAD500 million and CAD1 billion. Cleantech Private Equity Shop The fund has a global investing remit but Ruscetta said he will Launches Strategyfocus initially on Canada. “It’s my area of expertise and a market London’s Zouk Ventures has rolled out a second version of itsI know very well,” he said. “Canada is very much a relationship- cleantech private equity strategy. Cleantech Europe 2 held its firstdriven market—knowing the players and the landscape definitely closing this month at EUR50 million, and a final close isgives you an edge when investing here.” He pointed to the planned for next year at around EUR200 million.natural resources sector as one ripe with opportunities, but said The fund will invest in European companies across threethe fund is industry-agnostic. themed buckets: alternative/renewable energy technologies Ruscetta has managed the strategy with his own money since (such as solar, wind, biomass, hydro and geothermal); resource-November 2008. It has returned 64% this year to the end of efficiency technologies (smart grid, transportation, recyclingSeptember, with low beta, he said. The fund will run a relatively and others); and environmental services (waste management,concentrated portfolio of 20-30 positions, with a typical core long water, carbon capture and storage, etc.). Philip Tomlin, aposition accounting for 5% and a typical short around 2.5%. member of Zouk’s investor relations team, said the fund will The fund is only available in a domestic Canadian version at prioritise the sectors within each bucket where it sees thethe moment, but Ruscetta has plans to roll out an offshore greatest potential, but would not reveal which sectors these are.equivalent in the next two months. The fund charges 2/20. At Cleantech Europe launched in 2006 and manages just shy ofleast 35% of the incentive fee will be reinvested in the fund, EUR88 million. With the second iteration targeting more thanwhich Ruscetta hopes will demonstrate his commitment and twice the assets of its predecessor, Zouk intends to invest inconfidence in the strategy. roughly twice as many holdings—around 15 compared with Ruscetta left Goldman last year and began work on the the first fund’s eight positions—and also to write bigger tickets,8 ©Institutional Investor News 2009. Reproduction requires publisher’s prior permission.
  9. 9. December 2009 Foundation & Endowment Money Managementsaid Tomlin. adding that funds will face additional scrutiny on the source of The fund charges 2.5/20 fees and is targeting an IRR of 25%. information obtained.Tomlin declined to provide actual performance for the first fund. The Galleon case has definitely had an effect on conversations, an event-driven manager in Connecticut said. “In the past, I might have been more casual. Now there’s a song-and-danceGalleon Fallout Locks Hedgies’ Lips every time you have a conversation,” he said. “You don’t want toGalleon Group Founder Raj Rajaratnam’s recent arrest for insider sound smarter than you are in terms of E-mails and phone calls.”trading has made those in the hedge fund industry hesitant to trade And given the informal industry—this particular hedge fundinformation on an informal basis. “The use of wire tapping is manager makes between 30-40 phone calls a day—it’s too badcreating real sensitivity in terms of communications between everyone has to be “super-pedantically careful,” he added.analysts,” Kim Tomsen Budginer, founder of San Francisco-based As far as fundraising goes, since Galleon’s strategy took alaw firm KTB Counsel, said. “Not only are your emails potentially short-term high-frequency trading approach it follows that fundsbeing tracked but also your phone calls as well [...] frankly, people with a similar strategy are most likely to have difficulties in thiswill be more reluctant to trade gossip.” area, said the fund of funds official. Investors will likely be more While analysts receive information through research reports, wary of short-term trading funds in the next few months. “I’msuppliers, customers and competitors, the Galleon case has not going to say fundraising will stop, but it’s just another hurdle.introduced a new level of caution that will hinder And in this environment, no one needs extra hurdles,” he added.conversations. Opinion is divided on whether this will have Not everyone believes the Galleon case will have a huge effectimplications for performance. on performance, due to the abundance of information that is “I think it will hurt performance because a lot of corporations readily available. Plus, “the vast majority of long/short equitywill be scared about giving out information,” said a managing funds have never used insider information,” Donalddirector at a New York-based fund of funds firm. A lawyer Steinbrugge, founder of third-party marketing firm Agecroftagreed. “For hedge funds seeking an informational edge, it will Partners, added. “And those that have historically used insiderreally impair their ability to seek that edge,” the lawyer said, information will think twice.”
  10. 10. Corporate Access Program Get instant, online access to Foundation & Endowment Money Management for everyone — every associate — in your firm. This Corporate Access Program (CAP) is being offered now for ONE PRICE – Call now to get your discount and start your firm’s subscription to Your Corporate Access Subscription Includes: > The weekly news and search alerts available only to subscribers > Breaking news sent to each designated person at your firm > Marketing strategies of what the top asset managers are doing > Fund Focus on what funds are launching and what their strategies are > League Tables ranking managers in terms of mandates and assets won > Asset-Class on what nonprofits are investing in > News updated regularly at > A cost-effective way to disseminate informationFor more informationplease contact:Dan Lalor212.224.3045dlalor@iinews.comFoundation & Endowment Money Management –Exclusive News on Nonprofits Money Management
  11. 11. December 2009 Foundation & Endowment Money Management 50% to alternatives such as long/short hedge funds, global macro funds, and event-driven strategies. It also allocates 20% to domestic and international equity, 5% to hybrid funds, and FUND FOCUS another 5% to private equity. The consultant, who serves as an extension of the school’s in- house personnel, performs due diligence and advises the school on manager selection. “We believe in outsourcing, whereCulver Boosts Alternatives appropriate,” Adams noted. He added that the school choosesThe Culver Academies recently added a total of $14 million in managers based on their track record, expertise, tenure andsovereign debt, managed futures, global resources and long/short turnover of key personnel and the lack of deviation from statedmarket neutral holdings to its $200 million endowment. The investment procedure. “We don’t like style drift,” Adams said. Hefour new active investments ($2 million for sovereign debt, $2 also said the school avoids leveraged managers and requiresmillion for managed futures, $4 million for global resources, and adequate liquidity for its investments.$6 million for long/short market neutral) were funded by The Culver, Ind., preparatory school was created in 1894 as areducing cash, said Jeffrey Adams the chair of the school’s boys’ military academy, but has since evolved into a co-finance and investment committee. educational facility. Besides Adams, the investment committee Earlier this year, the school reduced its domestic equity includes Jim Brooks, former ceo of Beverage America; Peterexposure and has continued to maintain a relatively high cash Fasseas, chairman of Metropolitan Bank Group; Paul Gignilliat,position (20%) in order to have dry powder for future senior v.p. of UBS Financial Services; Jim Henderson, retiredopportunities when markets return to reduced levels of volatility. chairman and ceo of Cummins Inc.; Robie Vaughn, chairman ofTo maximize diversity, the school favors the fund of funds Vaughn Petroleum; Miles White, chairman and ceo of Abbottapproach, and none of its 25 active managers hold more than 5% Labs; Larry Wilson, retired chairman and ceo of Rohm andof the endowment’s total assets, said Adams, who took over the Haas; and John Buxton, head of Culver Schools.chairmanship earlier this year. For the fiscal year ending June 30, the fund returned -12.86% Personal– more than twice the performance of many sophisticated Adams retired as president and director of Wilmington Trust-endowments, such as Harvard Management Company, which Georgia where he served from 2003 to 2005 and led the bank’slost 27.3% in the same period. Through Sept. 30, trailing 12- wealth advisory/federal savings bank office. From 1995-2003, hemonth performance at Culver was 0.82%, trailing three-year served as executive v.p. for Balentine & Company, a registeredperformance was 1.96%, and trailing five years was 5.16%. The investment advisory firm later acquired by Wilmington emphasizes downside protection without sacrificing needed From 1976 to 1995, he was an attorney with Alston & Bird inupside through careful selection and monitoring of a diversified Atlanta. He earned his bachelor’s degree in English and politicalslate of active alternative managers, said Adams. science from the University of North Carolina in 1973, and his law degree from Yale Law School in 1976. He recently co-History founded investment advisory firm Balentine L.L.C.Until 2001, the endowment had a traditional asset mix of Along with his duties at Culver, Adams serves as a trustee atapproximately 60% domestic equity and 40% domestic bonds. Young Harris College, and chairs its marketing committee, andThat year, however, the fund hired Managing Director Brian also serves as board chair at the Care and Counseling Center ofHunter of Strategic Capital Allocation Group in Boston to serve Georgia. Adams lives in Atlanta with his wife, Corinne; theyas its first consultant and soon thereafter began adapting a more have two grown children. In his free time, he enjoys golf, travel,progressive investment strategy. private investing and reading—especially biographical and Besides the aforementioned 20% cash slug, the fund allocates historical novels. PRINT IT OUT. DOWNLOAD IT. YOUR CHOICE. Subscribers can access their copy of Foundation & Endowment Money management at To set up your subscriber password, contact or call (800) 715-9195 between 8:00 a.m. and 6 p.m.
  12. 12. Foundation & Endowment Money Management December 2009 NONPROFITS EYE (continued from page 1)FEMM: Why should a nonprofit invest in indexed equity? time the Standard & Poor’s 500 index, for instance, is in theHussain: Traditional long-only managers seldom outperform top quartile of long- only managers after fees.their benchmarks, after fees, over long periods of time.Studies have demonstrated that for institutional large-cap FEMM: Where does active management provide alpha?funds, 90-97% of the returns can be attributed to beta. Thus Lyons: Investors need to be reminded that active managementif the manager’s fee was attributed to the alpha component, it is a zero-sum game. In fact, after fees and costs, activecan be shown that large-cap funds consume 7% of the active management is probably a negative-sum game. We believeassets as expenses and then generate 2% of losses or negative that alpha is available in many different markets and assetalpha beyond it. The amount of time dedicated towards classes, but investors need to pick managers that have skill inmanager selection and monitoring in efficient markets could these areas and apply that skill as broadly as possible. Webe better spent on value-generating research or towards other often hear about areas in which active management is morealpha-generating opportunities. successful (small-cap, emerging markets, etc.), but what we’ve found is that while the level of alpha achieved may be higherLyons: Index funds provide nonprofits cost-effective, in those areas, the zero-sum game rules still apply, so investorstransparent and flexible exposure to the underlying markets in need to carefully select active managers regardless of thewhich they invest. Importantly, index funds also provide markets in which they are investing.superior liquidity than many active or private market strategies.The beta of the portfolio will be the primary driver of returns Hussain: Active management may provide long-term alpha inregardless of the vehicles used for implementation, so our belief markets which are inefficient, where the manager has localis that nonprofits would benefit greatly from the features these expertise, or where the index does not do a good job ofpassive strategies provide. representing the secular trends of that market (e.g., Brazil). Burke: Because indexing simply attempts FEMM: What equity strategies make sense to index? to replicate the performance of an Bishop: That depends on an investor’s underlying benchmark, there is little risk beliefs. Do they think that the markets are of manager underperformance. Portfolio inefficient? If yes, go active. If no, then management costs are minimal and index. If they answered “yes” to the first security turnover is relatively low, so question, then can active management add transaction costs are reasonable. In value in the equity market and capitalize on Patrick Burke addition, an investment committee’s job the inefficiencies? If “yes,” go active, if “no,”can be made less complex through the use of indexing. It Bailey Bishop then index. Do they feel confident that theysimplifies investment decision-making and can remove any can find the active managers who will beat the market and bestock or sector biases. The transparency of the index on the positive side in the zero-sum game? If “yes,” go active,approach helps to minimize any perceived or actual conflicts if “no,” then index.of interest. Hussain: Large-cap equities, where the markets are generallyPippin: More and more nonprofits are extremely efficient and generating alpha on a sustained basis isfocusing on generating alpha in alternative difficult. Even if alpha actually materializes, it can barely moveportfolios such as hedge funds and private the meter in terms of out-performance versus the relevantequity, where there are more inefficiencies benchmark metric. Indexing is also attractive wherever swapin the markets and less constraints on pricing is attractive.skilled managers’ alpha producing ideas andactivities. In addition, Burton Malkiel’s Pippin: It can make sense to index any equity strategy for whichwork has shown that over longer periods of Jeff Pippin passive index investment is available. It probably makes sense to12 ©Institutional Investor News 2009. Reproduction requires publisher’s prior permission.
  13. 13. December 2009 Foundation & Endowment Money Managementuse indexing as a default strategy and bring in active management benchmarks. While the index concept is relatively simple,in situations where there is high conviction that the manager can quality execution requires skill and experience. You also needproduce alpha on a sustained basis. to understand the firm’s securities lending program, how the revenue from it is allocated, and whether that allocation Lyons: For nonprofits, one of the biggest creates any conflicts between the manager and your issues is how to deal with inflation. Two areas organization. of passive management we have seen grow recently are commodities and Treasury Lyons: Manager selection is extremely important with indexed Inflation Linked Securities since they can investments. An investor should look carefully at the firm’s potentially commitment to the passive protect an business and the resources Carter Lyons investor “Manager selection is not relevant with the manager deploys withinshould we enter a more indexed investments unless you are their indexing teaminflationary environment. (technology, portfolioAnother area where we have obtaining this exposure via exchange managers, traders, riskseen an uptick in demand is traded funds or mutual funds.” managers, etc.). Price is onlytraditionally illiquid markets one component of the overallsuch as real estate and private equity. due diligence that should be performed before selecting an index manager.FEMM: How important is manager selection with indexedinvestments? What should you look for in a manager? Hussain: Manager selection is not relevantBurke: Selecting the right index manager is just as important with indexed investments unless you areas choosing the right active manager, but it might be a little obtaining this exposure via exchange tradedeasier because some of the key selection criteria are more funds or mutual funds. Fees and expensesreadily apparent. Some of the selection criteria include an plus the tracking error of the chosen vehicleevaluation of costs, tracking precision, investment approach versus the relevant benchmark are the Anjum Hussain(i.e., full replication vs. optimization) and the underlying bigger concerns. FOUNDATION & ENDOWMENT MONEY MANAGEMENT WEEKLY NEWS & SEARCH ALERT The weekly FEMM email features: • Search chart that includes potential, new, updated and completed manager and consultant searches • Exclusive news on what the top asset managers are doing, what funds are launching and what their strategies are • Exclusive interviews get inside the heads of trustees and senior executive at nonprofits to learn their investment strategies first-hand • News of personnel changes at foundations & endowments and much more! • Get a comprehensive round up of the week’s top news
  14. 14. Foundation & Endowment Money Management December 2009Search Directory Powered by: i i s e a r c h e s . c o mThe following directory includes search and hire activity for the past month. The accuracy of the information, which is derived frommany sources, is deemed reliable but cannot be guaranteed. All amounts are in US$ millions unless otherwise stated. To report managerhires and new searches, please call Mark Faro at (212) 224-3813, or fax (212) 224-3699. For further information on iisearches’ daily search leads and searchable database of mandates awarded and lost since 1995, please visit or contact Keith Arends at (212) 224-3533 or karends@iinews.comPotential Searches Total AccountFund & City Amount Assignment Size Consultant Comments/Firm HiredBaylor College of Medicine, Houston USD811 U.S. / Real Estate N/A Hewitt Associates, The fund is considering a potential increase to its real Independence, OH estate portfolio in 2010.Beloit College, Beloit, WI USD85 Global / Consultant N/A None The endowment is considering hiring a consultant for its endowment fund. It currently uses State Street Global Advisors. It plans to hire a firm by the first quarter.Capital University, Columbus, OH USD49 International / USD4.90 Hirtle, Callaghan & The fund is considering a potential boost to its international equity Active Equity Company, West allocation. A decision is expected by year’s end and pending approval Conshohocken, PA could ramp up the asset class by up to 10%.Claremont McKenna College, USD433 U.S. / Hedge Funds N/A Cambridge Associates, The endowment will increase its allocation to its hedge fund portfolioClaremont, CA Boston by the first quarter.Colonial Williamsburg Foundation, USD685 Global / Active Equity N/A Cambridge Associates, The fund is mulling the possibility of seeking a manager for a globalWilliamsburg, VA Boston equity brief by mid 2010.Davidson College, Davidson, NC USD400 U.S. / Active Equity N/A Cambridge Associates, The endowment may consider increasing its domestic Boston equity allocation by up to 5% during the first quarter.Davidson College, Davidson, NC USD400 U.S. / Active Fixed N/A Cambridge Associates, The fund may consider increasing its credit allocation by Income / Credit Boston up to 5% during the first quarter.Florida College, Temple Terrece, FL USD12 Global / Asset Study USD12 None The endowment will review its asset allocation and manager roster.Marymount University, Arlington, VA USD17.90 U.S. / Active Fixed Income N/A None The fund is considering the possibility of upping its fixed income allocation.Miami University, Oxford, OH USD337 Global / Alternative N/A Graystone Consulting, The endowment is evaluating its private equity, venture capital Washington, DC and private real estate investments.Miami-Dade College (Foundation), Miami, FL USD75 U.S. / Alternative N/A Consulting Services The foundation is examining maiden allocations to commodities Group, Memphis and real estate.Occidental College, Los Angeles USD308 U.S. / Active Fixed Income USD30.80 Cambridge Associates, The fund is considering plans of investing up to 10% into its fixed Boston income portfolio.Occidental College, Los Angeles USD308 U.S. / Cash USD30.80 Cambridge Associates, The fund is considering plans of investing up to 10% into Boston its cash portfolio.Oregon State University Foundation, USD340 International / Active Equity N/A Hammond Associates, The fund is considering an increase to its international equity exposure,Corvallis, OR St. Louis as a possible hedge against a weaker U.S. dollar. A decision is expected before year’s end and pending approval it may boost allocations by up to 10%.Pine Crest Preparatory School, USD37 U.S. / Alternative N/A Morgan Stanley Investment The fund is contemplating the possibility of increasing its alternativeFort Lauderdale, FL Consulting, New York allocations by 5% to enhance returns.Pitzer College, Claremont, CA USD84 U.S. / Active Fixed Income N/A Hammond Associates, The endowment may target its fixed income asset class for an St. Louis increase in the coming year.Pitzer College, Claremont, CA USD84 U.S. / Alternative N/A Hammond Associates, The endowment may target alternative investments for an increase St. Louis in the coming year.Rotary Foundation / The Rotary International , USD582 Global / Asset Study USD582 NEPC, Cambridge, MA The fund plans to conduct an asset allocation study early next year.Evanston, ILRotary Foundation / The Rotary USD582 U.S. / Real Estate / REIT N/A NEPC, Cambridge, MA The fund is monitoring real estate manager RREEF, due to performanceInternational , Evanston, IL related issues and is scheduled to review the firm in January.Southern Illinois University Foundation, USD75 U.S. / Active Equity N/A Fund Evaluation The fund may consider hiring a manager for itsCarbondale, IL Group, Cincinnati domestic equity portfolio.University of Houston, Houston USD450 Emerging Markets / N/A Cambridge Associates, The fund is keeping a keen eye on emerging markets equity and may Active Equity Menlo Park, CA decide to make commitments in the coming year.University of Puget Sound, Tacoma, WA USD218 International / Multi Asset N/A Fund Evaluation The endowment is looking to invest in international products. Group, CincinnatiUniversity of Rhode Island Foundation, USD74 U.S. / Hedge Funds USD7.40 Cambridge The foundation is contemplating a potential boost to its alternativesKingston, RI Associates, Boston portfolio and may target hedge funds for the increase.University of South Carolina Foundations, USD230 Emerging Markets / USD11.50 Fund Evaluation The foundation is examining a possible first-time allocation to emergingColumbia, SC Active Equity Group, Cincinnati markets equity. The school plans to rely on the recommendations of its consultant, Fund Evaluation Group, to whom all manager inquiries should be directed.University of Tennessee-Chattanooga USD86 U.S. / Active Fixed Income N/A LCG Associates, Atlanta The fund is mulling the possibility of an increase to its bond portfolio,Foundation, Chattanooga, TN ` which may be made as early as year’s end.14 ©Institutional Investor News 2009. Reproduction requires publisher’s prior permission.
  15. 15. December 2009 Foundation & Endowment Money ManagementPotential Searches (cont’d) Total AccountFund & City Amount Assignment Size Consultant Comments/Firm HiredWisconsin Alumni Research Foundation, USD1,500 U.S. / Active Equity N/A NEPC, Cambridge, MA The fund has plans to seek a long only equity manager next year.Madison, WIWisconsin Alumni Research Foundation, USD1,500 U.S. / Hedge Funds N/A NEPC, Cambridge, MA The fund has plans to seek a hedge fund manager next year.Madison, WIWisconsin Alumni Research Foundation, USD1,500 Emerging Markets / N/A NEPC, Cambridge, MA The fund has plans to seek an emerging marketsMadison, WI Active Equity equity manager next year.New SearchesLongwood University, Farmville, VA USD30 Global / Consultant USD30 None The fund has issued a request for proposals seeking an investment consultant. All proposals are due by Jan. 11. A selection is slated for the second quarter.University of Puget Sound, Tacoma, WA USD218 U.S. / Alternative / USD21.80 Fund Evaluation Group, The endowment is eyeing a potential boost to its real asset portfolio Real Assets Cincinnati and may target private energy and commodities for the increase.Updated SearchesBaylor College of Medicine, Houston USD811 U.S. / Asset Study USD725 Hewitt Associates, The fund may consider an increase to it real estate portfolio next year. Lincolnshire, ILCatholic University of America, USD165 U.S. / Active Equity N/A Cambridge Associates, Acadian Asset Management has been removed from the fund’sWashington, DC Menlo Park, CA watch list, due to improved performance. The firm managed a large-cap equity account.Catholic University of America, USD165 International / Active Equity N/A Cambridge Associates, Acadian Asset Management has been removed from the fund’sWashington, DC Menlo Park, CA watch list, due to improved performance. The firm managed an international equity account.Franciscan Missionaries of Our Lady USD800 U.S. / Cash N/A Cambridge Associates, The fund has upped allocations to cash. The increase which will beHealth System, Baton Rouge, LA Menlo Park, CA handled by its custodian JPMorgan.Harvey Mudd College, Claremont, CA USD174.10 U.S. / Active Fixed Income N/A Cambridge Associates, Barclays Global Investors has been dropped from the fund’s Boston fixed income portfolio, for unspecified reasons.Mount St. Mary’s College, Los Angeles USD73.40 Global / Asset Study USD77 Cambridge Associates, The fund has recently completed its asset study and has done some Menlo Park, CA changes in its manager roster.Norwich University, Northfield, VT USD150 U.S. / Active Fixed Income USD5 Cambridge Associates, Boston The fund has terminated Brandywine Global Investment Management, due to unspecified reaons.Pine Crest Preparatory School, USD37 U.S. / Active Fixed Income USD1.60 Morgan Stanley Investment The foundation has upped its fixed income exposure to 22% from 17%Fort Lauderdale, FL Consulting, New York as it sought to stabilize its portfolio.Pitzer College, Claremont, CA USD84 U.S. / Active Equity USD0.75 Hammond Associates, The fund recently dropped a small-cap equity mandate run by / Small-Cap St. Louis North Point Portfolio Managers.St. Lawrence University, Canton, NY USD180 U.S. / Active Fixed Income N/A Cambridge Associates, The fund has terminated Silver Point Capital from its active / Absolute Return Arlington, VA fixed income,absolute return portfolio due to performance reasons.University of Houston, Houston USD450 U.S. / Hedge Funds USD20 Cambridge Associates, Boston The endowment has upped its hedge fund allocations to 12% from 7.1%. The increase did not result in a search for managers as it was distributed among its incumbents.Western Pennsylvania School for USD113 U.S. / Asset Study USD113 Wilshire Associates, The fund has recently completed its asset study and has not initiatedBlind Children, Pittsburgh Pittsburgh any essential changes in the portfolio.Completed SearchesBaylor College of Medicine, Houston USD811 U.S. / Multi Asset N/A Hewitt Associates, Barclays Global Investors Independence, OHBeloit College, Beloit, WI USD85 U.S. / Passive Equity USD28 State Street Global State Street Global Advisors Advisors, BostonBraille Institute of America, Los Angeles USD80 U.S. / Active Fixed Income USD7 Cambridge Associates, Boston Income Research & ManagementColorado State University Foundation, USD210 U.S. / Active Equity USD5 Monticello Associates, UnknownFort Collins, CO DenverColorado State University Foundation, USD210 U.S. / Active Equity N/A Monticello Associates, UnknownFort Collins, CO DenverFranciscan Missionaries of Our Lady USD800 U.S. / Active Fixed Income USD5 Cambridge Associates, The Vanguard GroupHealth System, Baton Rouge, LA St. LouisGroton School, Groton, MA USD261 U.S. / Hedge Funds N/A Cambridge Associates, Elliott International BostonIthaca College, Ithaca, NY USD178 Global / Active Fixed Income USD10 Prime, Buchholz & State Street Global Advisors Associates, Portsmouth, NH To receive email alerts or online access, call 800-715-9195. 15