Michigan State University

Generated outreach message alignment report
1. You actively hire external managers (including hedge funds) and run the portfolio through a roster of outside managers rather than direct securities.
We’re an entrepreneurial, owner-managed hedge fund with institutional processes that fits an external-manager model and can be added alongside your existing roster.
Evidence
“The CIO is authorized to hire and delegate to external investment managers responsibility for managing investments held in the CIF on behalf of the University.” “The investment office is responsible for implementing the university's investment policy by identifying, hiring, and monitoring outstanding fund managers,” “Currently, the MSU Alumni Foundation does not invest in individual securities, but rather invests with a roster of investment managers”
2. You maintain a dedicated hedge fund allocation and emphasize low-correlation, skill-based strategies; hedge funds were a recent performance driver.
Our concentrated, high-conviction strategy targets idiosyncratic alpha with low equity beta—designed to complement your diversifying/absolute return bucket.
Evidence
“Hedge Funds 15% 10% - 20% HFRI Fund of Funds Index” “Strategies for consideration include a diversified range of long/short equity, market neutral, event driven, relative value, and alternative income strategies, as well as an avoidance of strategies that rely on more complex return drivers” “absolute return strategy, such as hedge funds, that use strategies to deliver returns uncorrelated to broad equities markets;” ““Our strong performance this year came primarily from ... the strong performance of our hedge fund portfolio,””
3. You allocate meaningfully to international equities and benchmark to MSCI ACWI ex-US, signaling openness to global mandates.
We run a global, high-conviction portfolio with emerging markets capability that can complement your ACWI ex-US exposure and exploit cross-border inefficiencies.
Evidence
“International Equity 15% 10% - 20% MSCI ACWI ex-US Index” “public equities, either domestic or foreign;”
4. You prioritize long-term results and look for managers with a verifiable 5+ year or full-cycle track record.
We have a long, cycle-tested track record aligned with your multi-year horizon and focus on sustaining real returns for a perpetual pool.
Evidence
“A verifiable track record of sustained outperformance. Typically, at least five years or through a full investment cycle, whichever is longer,” “Institutional funds invested in the CIF share the same long-term strategies as the true endowments and are therefore required to have a minimum five-year investment period.” “The MSU Alumni Foundation is designed to exist in perpetuity, and as such, managing the Long-Term Pool assets to meet the long-term Return Objective takes precedence over minimizing short-term volatility.”
5. You require institutional-quality operations—audited financials, documented controls, and timely reporting.
As an owner-managed firm built for institutions, we provide top-tier audits, robust controls, and transparent monthly/quarterly reporting.
Evidence
“considered for the Long-Term Pool, investment managers shall be of institutional quality, pass the Consultant’s due diligence, and be recommended by the Consultant.” “Documented processes and procedures with appropriate internal controls.” “Audited financial statements, preferably with a top tier accounting firm.” “Transparent and timely reporting. Typically, either monthly or quarterly depending on asset class.”
6. You manage liquidity tightly—rebalancing within ~90 days and requiring CFO concurrence for redemption terms beyond three years; alternatives aren’t used for liquidity.
Our fund’s liquidity terms and capacity can support your 90-day rebalancing framework without long lock-ups, aligning with your governance.
Evidence
“If rebalancing is deemed necessary, actions will be completed within 90 days, subject to any liquidity terms and guidelines” “The CFO is responsible for managing and maintaining the appropriate levels of liquidity for the University; the CFO must concur on all CIF investments with redemption restrictions of greater than three years.” “However, these alternatives will also be less liquid than traditional investments, and as such, should not be considered as a source for liquidity needs.”
7. You allow managers to use derivatives/shorting and are flexible on vehicle structures (LPs, trusts, mutual funds, separate accounts).
Our long/short toolkit and standard LP structure fit your approved instruments and vehicles while keeping portfolio beta low.
Evidence
“The CIF may employ funds that use derivatives, including futures, options, and swaps. Funds may also sell securities short.” “Allowable investment vehicles include but are not limited to: mutual funds; collective bank trusts; Delaware Statutory Trusts; and domestic and foreign limited liability partnerships.” “The Committee intends to give investment managers full investment discretion within the scope of this policy”