Baylor University

Generated outreach message alignment report
1. Active allocator to external managers in LP/private fund formats
Your owner-managed, concentrated hedge fund in a limited partnership structure aligns with their established practice of hiring third-party managers across LP and private fund vehicles.
Evidence
“These financial assets are managed primarily through external investment management firms selected and monitored by the University’s Office of Investments and the Baylor Executive Investment Committee in accordance with the University’s Endowment Investment Policy.” “The investment management firms are predominately organized in limited partnership, private fund, registered investment company (1940 Act mutual fund), separately managed account, and trust formats.”
2. Meaningful, ongoing commitment to marketable alternatives/hedge funds
They already fund long/short and fundamental value hedge funds at scale, creating a clear fit for a high-conviction, low-correlation strategy.
Evidence
“At May 31, 2025, BUF included 19 marketable alternative funds totaling $643,077,000.” “These funds employ various investment strategies such as long/short equity, fundamental value, distressed asset and debt, among others.”
3. Global orientation and openness to specialist international exposure
A global, emerging-markets-capable, concentrated manager fits their use of specialist managers and allocations across national and international markets.
Evidence
“The BUF is an internally managed portfolio which is invested through over 80 managers that specialize in different sectors of the global financial market.” “Equities are assets invested (directly or indirectly) in publicly traded equity shares which are listed on national and international exchanges...” “Capital is allocated to domestic and international markets in the various alternative investment funds.”
4. Comfort investing in NAV-priced commingled funds
A smaller, boutique LP providing NAV-based reporting fits their valuation approach that uses manager-provided NAV as a practical expedient.
Evidence
“Accordingly, investments for which observable market prices in active markets do not exist are reported at fair value, as determined by the University, using external investment fund managers’ provided NAV as a practical expedient of fair value and other available information.” “As noted in Footnote 2, entities may estimate the fair value of certain investments by using NAV as a practical expedient as of the measurement date.”
5. Established tolerance for hedge fund liquidity terms from bi-monthly to multi-year
Quarterly or semi-annual liquidity in a concentrated, high-conviction strategy would sit within their accepted range and liquidity framework.
Evidence
“Redemption terms of the marketable alternative funds within the portfolio range from bi-monthly to rolling three years with various notice requirements.” “The amount of liquidity available to investors is directly related to the liquidity and risk associated with the underlying portfolio.”
6. Seeks diversification and low-correlation returns via marketable alternatives
A low-correlation, concentrated best-ideas hedge fund can help improve risk-adjusted returns and complement their 20% allocation to marketable alternatives.
Evidence
“To meet its long-term rate-of-return objectives, the University relies on a total return strategy utilizing both income and growth to maximize the risk adjusted return through diversification of the assets.” “20% Marketable Alternatives”
7. Emphasis on long-term real returns (spending plus inflation) and stable earnings
A long-track-record manager focused on compounding and downside control aligns with their goal to meet spending and preserve purchasing power.
Evidence
“The University expects its endowment funds, over time, to provide an average rate of return at least equal to the spending policy requirements plus the rate of inflation.” “The University has adopted investment and spending policies for endowment assets that attempt to meet three objectives: (1) provide a predictable, stable stream of earnings...”