Clemson University Foundation

Generated outreach message alignment report
1. You maintain a dedicated hedge fund allocation targeting diversifying, lower-volatility returns between equities and bonds.
Our concentrated, low-correlation strategy is designed to diversify equity risk and smooth drawdowns—exactly what you seek from hedge funds.
Evidence
“The hedge fund allocation includes a diverse group of managers and strategies with a goal of earning positive returns between those of equities and bonds over time, with less volatility and smaller interim declines than that of the public equity markets.” “The roles of the hedge fund portion of the portfolio are to provide diversification and access to unique strategies and manager skill.”
2. You actively allocate to external hedge funds and accept structured liquidity (monthly–annual), lock-ups and gates to pursue superior risk-adjusted returns.
We are an external, institutional hedge fund comfortable with standard liquidity terms and focused on high risk-adjusted returns.
Evidence
“Hedge funds (2) 183,191,899 - Monthly to Annually 33-95 days” “(2) This category includes investments which seek to generate superior risk adjusted returns through a range of investment strategies. In addition to lock -up periods, some investments include early redemption fees or "gates" which limit the percentage of the investments that can be redeemed at one time.” “The Foundation will adopt specific investment guidelines for investment advisors managing portfolio assets in a separately managed account.” “Assets managed in commingled vehicles are subject to the investment guidelines outlined in the prospectus or other governing agreement.”
3. You are open to high-conviction, concentrated managers and even co-investments in best ideas, with diversification achieved at the total portfolio level.
Our concentrated, owner-managed approach and willingness to offer co-invests in top convictions fits your portfolio-level diversification model.
Evidence
“The Portfolio is expected to be broadly diversified... Diversification will be achieved at the total Portfolio level and not necessarily at the investment manager level. To produce overall diversification, managers may be selected to employ different management philosophies...” “may include opportunistic allocations to co-investments with hedge fund managers in high conviction ideas.” “Manager Autonomy Decisions as to individual security selection, security size and quality, number of industries and holdings, current”
4. You maintain a significant Global Equity allocation with explicit inclusion of emerging markets and non-U.S. benchmarks.
Our global mandate with emerging markets capability can complement your ACWI ex-US exposure and global equity range.
Evidence
“Global Equity includes investments in stocks listed on public exchanges [2] (in both developed and emerging markets)” “Asset Class Minimum Maximum Global Equity 30% 80% Hedge Funds 0% 30% Real Assets 5% 25% Fixed Income 10% 25%” “Russell 3000 Index US Stocks 42% MSCI All Country World Ex US Index Non-US Stocks 28%”
5. You evaluate success over long horizons with explicit goals (inflation + 5.25% and payout + inflation + fees) and a multi-generational window.
Our long track record and low-correlation compounding focus align with your 5–10 year evaluation cadence and real-return targets.
Evidence
“Portfolio performance is expected to: Match or exceed the rate of inflation plus 5.25%. Performance versus this objective will be evaluated over rolling 10-year periods.” “Exceed the return of a “Composite Benchmark” made up of the indices presented below. Performance versus this objective will be evaluated over rolling five- to ten-year periods.” “return that exceeds the sum of the Foundation’s approved payout rate plus inflation, plus investment management and related fees. The objective is expected to be obtained over time but not in each and every reporting period.” “A multi-generational window not only allows for the typical diversification across asset classes, but also for time diversification across both up and down markets.”
6. You prefer specialist, entrepreneurial managers and will source active managers when indices are unsuitable.
As an owner-managed, specialist firm, we offer high-conviction, active exposure where passive benchmarks are less effective.
Evidence
“These managers will have expertise in a particular field and can provide the necessary diversification within the asset class.” “In instances where there may be an asset class that is considered important for portfolio construction, however, there may be no suitable investable index; CUF leverages its investment consultant to gain access to active managers within the asset class.”
7. You emphasize rigorous risk controls (derivatives oversight, prudent leverage) and strict liquidity coverage at the total portfolio level.
Our risk-managed, low-correlation process—with disciplined use of derivatives and leverage—fits your governance and liquidity sensitivities.
Evidence
“No leverage (i.e., margin or borrowing) will be used at the total Portfolio level. The CIO may use margin to facilitate or settle trades within specific sectors. Individual managers may use leverage, provided its use is consistent with their risk controls and strategy.” “All managers using derivatives must have systems in place to rigorously analyze and monitor duration, liquidity, counter-party credit risk and other risks in order to minimize the risk associated with the use of derivatives.” “The liquidity of the Portfolio will be closely monitored and will be maintained at a level such that a minimum of three years expected spending plus outstanding capital commitments may be easily accessed within a three-month period, even under stressed market conditions.”