Bucknell University - Message Points

1. You benchmark growth assets to MSCI ACWI and manage to a global equity policy mix.

A global, high-conviction manager with international and EM capability can be evaluated cleanly versus your ACWI-oriented framework and complement your 64% growth-assets sleeve.

Evidence

“Internal Benchmark: 64.0% MSCI AC World Index Net;” “Weighted Growth Assets Composite: 100.0% MSCI AC World Index Net”

2. You favor passive exposure in the U.S. and active managers internationally/riskier areas.

A concentrated, entrepreneurial stock-picker with global and EM skill is aligned to your desire for active alpha outside the most efficient U.S. segments.

Evidence

“For the fiscal year, Bucknell's public portfolio performed in line with the benchmark, contributing to passive investment in the U.S. and outperformance from active managers internationally.” “In 2024, following a shift toward passive investments in areas of efficiency and active in riskier areas, Bucknell’s diversified public equity portfolio performed in line with the benchmark.”

3. You deliberately allocate to low-correlation, low-beta hedged strategies within Hybrid Assets.

A hedge fund offering a low-correlation return profile and drawdown protection can slot into your Hybrid sleeve to diversify growth assets and support liquidity.

Evidence

“These investments typically exhibit lower correlation with growth assets and include credit, which contributes to attractive income generation and improves overall portfolio liquidity.” “Bucknell’s hedged portfolio is strategically focused on low-beta investments, offering protection against market fluctuations.”

4. You use concentrated, flexible hedge fund strategies as part of the portfolio.

A small-AUM, best-ideas, high-conviction manager fits your preference for concentrated, opportunistic strategies that can hedge risks.

Evidence

“our concentrated portfolio of hedge fund strategies.” “a concentrated portfolio of relatively flexible investment strategies with the ability to be opportunistic as well as hedge against security and market risks.”

5. You seek ‘best-of-breed’ specialists with unique, defensible edges and idiosyncratic return drivers.

An owner-managed boutique with a clear competitive advantage and differentiated process aligns with your manager selection philosophy.

Evidence

“When constructing this portfolio, we seek managed strategies with unique and definable competitive advantages in order to produce excess returns with limited correlation across strategies.” “These resources include our strategic adviser, Commonfund and other best-of-breed investment firms with specialty expertise.”

6. ESG integration is a central requirement for external managers.

If your hedge fund integrates financially material ESG factors and handles engagement/proxy responsibly, it aligns with your Responsible Investing Guidelines and manager oversight.

Evidence

“These managers are expected to incorporate material ESG factors into their investment process for endowment funds.” “The Committee and its advisors regularly engage with managers to discuss their ESG integration practices.”

7. You target CPI + 5.5% real returns and evaluate over rolling 10-year periods.

A manager with a long, verified track record and emphasis on compounding real returns can support your intergenerational objectives and performance framework.

Evidence

“Bucknell Primary Return Objective: 5.5% + CPI” “This objective is measured over rolling 10-year periods in order to approximate a full market cycle.”

8. You actively pursue non-U.S. and emerging markets opportunities alongside U.S. exposure.

A global manager with EM capability and stock selection can help improve outcomes in segments you monitor closely and have allocated to historically.

Evidence

“During the last fiscal year, we’ve made efforts to reduce our overweight to US equities... in favor of non-US companies that offer lower valuations in potentially economically expanding regions such as Europe and emerging markets.” “Our investments in emerging market equities were the primary detractor of overall performance in the past fiscal year.”