Colgate University

Generated outreach message alignment report
1. Open to allocating to new/small/boutique managers and building long-term relationships
Supports outreach from an entrepreneurial, owner-managed hedge fund with smaller AUM seeking a durable partner.
Evidence
“We are always looking for both new and established firms to develop and build a long-term relationship.”
2. Preference for active, non-index, diversified approaches that mitigate downside risk
Aligns with a high-conviction, low-correlation strategy that avoids index-like exposure and emphasizes risk management.
Evidence
“While some more simplistic index investment approaches may deliver higher short-term performance, they also expose the portfolio to considerable downside risk.” “For instance, had Colgate pursued a more passive, public-equities-only strategy during periods like 2000–2002 or 2008, the university would have experienced 40–50% declines in value...”
3. Strong bias toward disciplined, long-term investing and against performance-chasing
Favors concentrated, best-ideas managers who are patient, process-driven, and not focused on quarter-to-quarter performance.
Evidence
“Chasing performance may work for a moment, but enduring through a full cycle requires discipline.” “Inside this environment of external pressure and rapid information cycles, Colgate has remained disciplined in maintaining a long-term, diversified investment approach.”
4. Willing to trade some upside in strong markets for downside protection and resilience in drawdowns
Matches a low-correlation hedge fund profile that emphasizes capital preservation through cycles.
Evidence
“the endowment will seek broad diversification among assets having different characteristics and is willing to endure lower relative performance when compared to benchmarks in strong markets in exchange for greater downside protection in weak markets.” “However, when the market declined by more than 50% from 2000 to 2002, our diversified portfolio produced a positive return, allowing operations to remain stable.”
5. Performance is evaluated over rolling long-term periods versus benchmarks and spending needs
Supports managers with long track records and a long-term orientation rather than short-term results.
Evidence
“Accordingly, its performance will be measured over rolling long-term periods and compared to an equivalent benchmark appropriately weighted in accordance with the asset allocation policy.” “Over the past decade, the endowment has achieved an annualized return of 7.9%, exceeding the benchmark of 7.8% and the University’s long-term spending rate of 5.0%.”
6. Manager selection is based on portfolio fit and role-based value-add, not in isolation
Favors differentiated, low-correlation strategies that complement the total portfolio rather than mimic existing exposures.
Evidence
“Various asset classes or strategies serve distinctly different roles and will be included only if they add value to the overall portfolio.” “Management and investment decisions about individual assets will not be made in isolation but must instead be made in the context of the endowment’s portfolio of investments as a whole...”
7. Structured sourcing via consultants and rigorous ongoing due diligence of external managers
Indicates readiness to engage with external hedge funds that can meet institutional DDQ, risk, and reporting standards.
Evidence
“The investment office evaluates new investment opportunities, works with outside consultants and advisory firms, and conducts ongoing due diligence on existing managers and asset classes.”
8. Focus on total return and strong risk-adjusted outcomes
Aligns with a high-conviction strategy targeting attractive risk-adjusted returns with low correlation to broad equity indices.
Evidence
“The asset allocation policy is constructed to maximize total risk-adjusted return.” “The Board is very pleased with the management and performance of our endowment, which continues to produce very strong risk-adjusted outcomes.”