Cornell University Office of University Investments

Generated outreach message alignment report
1. You maintain sizeable non-U.S. equity exposure and an explicit international/foreign equity sleeve.
A global, concentrated best-ideas manager can slot into your foreign/international equity lineup and complement existing US allocations.
Evidence
“asset allocation approach and maintains, within defined limits, exposure to the movements of the world equity, fixed income, commodities, real estate, and private equity markets.” “Foreign equity 628,293 371,927 5,597 532,306 1,538,123” “International equity - 55,786 - 55,786”
2. You allocate to emerging markets across both equities and debt.
Our global/EM capability and high-conviction approach can provide targeted EM alpha within your existing EM equity and EM debt sleeves.
Evidence
“Emerging markets - 25,190 - 25,190” “Emerging markets debt - 13,896 - 13,896”
3. You have a meaningful allocation to marketable alternatives and accept quarterly–annual redemptions with initial lock-ups.
A boutique hedge fund with a differentiated, low-correlation profile and reasonable liquidity terms fits your established hedge fund allocation framework.
Evidence
“Marketable alternatives 2,268,752 20,000 1 to 10 years Ranges between quarterly redemption with 30 days notice to annual redemptions with 60-90 days notice” “* Represents initial investment lock up restriction. No other material redemption restrictions, such as redemption gates, were in place at year end.” “The LTIP is invested across multiple asset classes including stocks, bonds, and alternative asset classes such as private equity, hedge funds, real estate, and resource related investments.”
4. You permit outside managers to use derivatives to manage currency, rates, and create synthetic exposures under negotiated guidelines.
Our flexible, risk-managed toolkit (including prudent derivatives) supports a low-correlation, globally unconstrained approach aligned with your guidelines.
Evidence
“The University has approved the use of derivatives by outside investment managers, based on investment guidelines negotiated when a manager is appointed.” “Specifically, financial derivative instruments may be used to manage foreign currency exposure, obtain commodity exposure, create synthetic exposure, or obtain protection against increases in interest rates.”
5. You target CPI+5% net over rolling five-year periods and an expected return around 7.3%, explicitly relying on managers’ value add.
A high-conviction, alpha-driven strategy with a long track record of net outperformance is built to contribute to your CPI+5 objective over full cycles.
Evidence
“The University’s investment objective... to achieve a total return, net of expenses, of at least five percent above inflation, as measured by the Consumer Price Index over a full market cycle (typically five to ten years).” “Expected return on plan assets 7.30% 7.30% 7.30% 7.30%” “The factors impacting the expected rates of return... include... anticipated value added by investment managers”
6. You routinely invest through external managers and private partnership structures, using NAV-based valuation and GP-determined marks.
As an entrepreneurial, owner-managed boutique, we fit your preference for specialist external managers operating in LP structures with robust NAV reporting.
Evidence
“Investments included in Level 3 consist primarily of the University’s ownership in... limited partnerships, and equity positions in private companies.” “The University uses net asset value (“NAV”) per share, or its equivalent, to estimate the fair values of certain investments.” “The NAV of these investments is determined by the general partner.”
7. You emphasize diversification and maintain a dedicated ‘diversifying assets’ bucket to reduce portfolio correlation.
Our low-correlation return profile and global, idiosyncratic idea set can serve as a diversifier alongside your equity and private allocations.
Evidence
“Diversification is a key component of the University’s standard for managing and investing endowment funds” “Diversifying assets 266,721 120,603 1 to 10 years...”
8. You evaluate performance over full market cycles (5–10 years) and deploy LTIP capital with multi-year horizons.
A long, through-cycle track record and patient, high-conviction process align with your evaluation horizon and capital commitment profile.
Evidence
“over a full market cycle (typically five to ten years)” “The LTIP is a mutual-fund-like vehicle... for funds that are not expected to be expended for at least five years.”