Macalester College - Message Points

1. You maintain a material hedge fund and liquid alternatives allocation, using managers with monthly–annual liquidity to capture manager skill and diversification.

A concentrated, high-conviction, low-correlation hedge fund can slot into your existing alternatives sleeve and match your comfort with limited liquidity and manager-driven alpha.

Evidence

“Hedge funds (d) 397,487 None Monthly - Annual 30 - 90 days” “Hedge funds consist of funds in which the College has invested to potentially benefit from the skill of fund managers or to access unconventional assets. Typically, the underlying investments in these funds are publicly traded.” “Liquid alternative investments - 20,686 - - 20,686”

2. You allocate to actively managed non‑US equity collective trusts with the ability to invest in emerging markets and you hedge FX risk.

A global, EM-capable, high-conviction manager fits your existing international sleeve and risk framework (including currency management).

Evidence

“Foreign equities held in collective trusts measured at net asset value - - - 113,010 113,010” “Foreign equities held in collective trusts are actively managed ... focused on the equity markets of non-US developed market countries. These funds have the ability to invest a portion of the funds in equities of emerging market countries.” “The College hedges the foreign currency risks of the non-US developed markets public equity portfolio by entering into foreign currency exchange contracts.”

3. You are comfortable investing through NAV‑priced pooled vehicles and alternative structures (collective trusts, quarterly‑liquid funds).

An entrepreneurial, boutique manager offering a commingled fund with NAV valuation and reasonable liquidity can align with your implementation preferences.

Evidence

“The College has concluded that the net asset value (NAV) reported by the underlying fund approximates the fair value of the investments and serves as the practical expedient” “Domestic equities - alternative structures (c) $ 68,527 None Quarterly 60 days” “The majority of the assets of the endowment funds have been placed in an investment pool...”

4. You emphasize manager skill and active management to access unconventional, publicly traded opportunities.

A concentrated best‑ideas, high‑conviction manager can meet your preference for active, skill‑based alpha in public markets.

Evidence

“Hedge funds ... invested to potentially benefit from the skill of fund managers or to access unconventional assets. Typically, the underlying investments in these funds are publicly traded.” “Domestic equities held in collective trusts are actively managed investment funds focused on US equity markets.”

5. You have a long‑term orientation with a 5% spending rule and target ~5% real returns, and you are comfortable with multi‑year fund lives and no secondary sales.

A manager with a long, consistent track record and total‑return mindset can support your spending needs while preserving purchasing power over full cycles.

Evidence

“The College expects its endowment funds, over three to five years, to provide an average annual real rate of return of approximately 5% annually.” “The other half of the draw is computed as 5% of a trailing a 16-quarter average market value of long-term investments.” “The College invests in funds with a life of 5 to 15 years, and does not have redemption rights. The College has no plans to sell any of these assets on the secondary market.”

6. You recently transitioned to an OCIO (Investure) to access top‑tier managers and deliver consistent risk‑adjusted performance while retaining flexibility.

A differentiated, low‑correlation, high‑conviction boutique can be an attractive addition for your OCIO’s lineup seeking specialized, international/EM alpha.

Evidence

“On September 1, Macalester will close the internal Investment Office and transition management of the college’s endowment to Investure.” “The decision was made by the Board of Trustees with the goal of delivering consistent risk-adjusted endowment performance with greater access to top-tier fund managers.” “Macalester gains access to more top-performing investment opportunities while retaining a level of flexibility necessary for our community.”

7. You actively manage risk with exchange‑traded derivatives (futures, FX) and target diversification across growth, real assets, and safety/liquidity buckets.

A hedge fund with disciplined risk management and low correlation can complement your diversified policy and hedging practices.

Evidence

“In the statements of activities, net investment return includes gains or losses from the use of derivatives for hedging and rebalancing activities. These derivatives are marked to market daily and exchange traded.” “The College targets a diversified asset allocation that places emphasis in three broad categories - economic growth, real assets, and safety and liquidity - in a 70-18-12 percent ratio...” “Diversification and rebalancing to target weights have helped to preserve capital and maintain liquidity for the college.”