Kansas State University Foundation

Generated outreach message alignment report

1. You maintain a dedicated Absolute Return hedge fund sleeve for diversification and volatility reduction.

Signals strong appetite for low-correlation hedge fund strategies—well aligned with a concentrated, high-conviction, low-correlation profile.

Evidence

“Hedge funds Absolute return 149,625,898 66,887,122 216,513,020” “This category includes investments in hedge funds that pursue multiple strategies to diversify risks and reduce volatility.”

2. You actively hire and monitor external managers and invest via NAV-based pooled vehicles.

Openness to external hedge funds and pooled/separate account structures fits an entrepreneurial, owner-managed boutique with institutional reporting.

Evidence

“Investments in pooled separate accounts, private capital funds and hedge funds are recorded at the estimated net asset value per share, as a practical expedient, to determine the fair value of the investments.” “Staff implements the policies through: 1) the selection of investment strategies; 2) the hiring, monitoring and changing of investment managers; and 3) rebalancing the portfolios.” “Investment results are monitored by the committee quarterly through manager and portfolio performance and due diligence reporting.”

3. You allocate globally, including to non-U.S. and emerging regions, and hold global real assets.

Supports consideration of a global, EM-capable, concentrated best-ideas manager to complement international exposures.

Evidence

“CENTRAL AMERICA AND THE CARIBBEAN 0 0 INVESTMENTS 180,881,854” “EAST ASIA AND THE PACIFIC 0 0 INVESTMENTS 3,824,968” “The funds’ composite portfolio includes investments in U.S. common stocks, global real estate projects and arbitrage investments.”

4. Your LTIP targets long-term total return with distribution smoothing (4.3% spend) to protect purchasing power.

Favors managers with long track records, capital preservation, and steady, compounding alpha—hallmarks of high-conviction, concentrated strategies.

Evidence

“The Foundation’s long-term investment pool (LTIP) strives to achieve long term capital appreciation and consistent income by utilizing a “total return investment strategy.”” “Distributions from the long-term investment pool are calculated annually using a 12 quarter unit value average multiplied by the distribution rate set by the board of directors.” “Distribution rate for the years ended June 30, 2025 and 2024 were 4.3%.” “This action creates a distribution smoothing and is consistent with the board of directors’ long- term strategic plans and attempts to treat all generations equitably and protect future purchasing power.”

5. You have fresh committed capital earmarked for new alternative investments.

Indicates near-term openness to underwriting new hedge fund relationships that can enhance returns and diversification.

Evidence

“In addition to the funding commitments identified above, the Foundation was committed to invest in new alternative investments with committed capital of approximately $79,000,000 as of June 30, 2025.”

6. You accept monthly-to-annual liquidity and standard hedge fund terms, including gates and holdbacks.

Comfort with typical hedge fund liquidity profiles aligns with a concentrated, active strategy offering periodic liquidity.

Evidence

“Pooled separate funds (A) Equity securities 322,625,726$ -$ Monthly 5-45 days” “Hedge funds Absolute return (C) 216,513,020 - None to Annually 3-90 days” “Certain funds may have the ability to impose a suspension or postponement of redemptions until further notice (a “Gate”). In addition, certain funds may delay payment of a portion of redemption proceeds (a “Holdback”) until the annual audited financial statements are distributed.”

7. You permit managers to use derivatives, shorting and leverage to build less-correlated return profiles.

Aligns with a high-conviction, risk-managed hedge strategy targeting low correlation to major asset classes.

Evidence

“Fund managers run proprietary strategies employing securities and instruments such as cash, stocks, partnerships, bonds and derivative instruments including options, futures and swaps in various combinations, sometimes shorting various securities and employing leverage to construct desired risk/return characteristics that are less correlated to the major asset classes.”