Middlebury College

Generated outreach message alignment report
1. You rely on an OCIO (Investure) to select external managers and use pooled vehicles for access.
As an external, entrepreneurial manager, we can slot into your OCIO-managed lineup and offer a concentrated, high-conviction strategy via a commingled vehicle.
Evidence
“Investure works in concert with foundations and other college and university endowments and helps develop guidelines and objectives, allocates assets, selects managers, monitors performance, and administers pooled-investment vehicles that are available only to clients.” “Since 2005, Middlebury has contracted with Investure, a private investment-management company, to manage the College’s investment portfolio.”
2. You allocate through NAV-based commingled funds/LPs, accept lockups, and favor SEC-registered managers.
Our fund structure (NAV-based LP with modest lockups) and SEC registration align with your governance and liquidity preferences.
Evidence
“Middlebury utilizes the net asset value (NAV) as a practical expedient to estimate the fair value of those funds... Investments reported at NAV consist of shares or units in funds... The majority of these fund managers are registered as required by the Securities and Exchange Commission.” “Certain investments in funds contain lock-up provisions. Under such provisions, share classes of the investment are available for redemption at various times in accordance with the management agreement with the fund.” “The investment objectives... are achieved in partnership with external investment managers operating through a variety of vehicles, including separate accounts, limited partnerships, and commingled funds.”
3. You allocate to hedge funds/alternative equities and expect managers to generate high returns irrespective of market direction, often using derivatives to exploit inefficiencies.
Our high-conviction, low-correlation approach seeks absolute returns and prudently uses derivatives to capitalize on global/EM inefficiencies.
Evidence
“Alternative equity managers seek to generate high returns regardless of the direction of the overall stock market and may use derivatives to exploit inefficiencies in securities markets.” “Hedge Funds”
4. You emphasize long-horizon, risk-aware performance: maximizing net returns over rolling 10-year periods with explicit drawdown discipline.
Our long track record and risk management focus aim to compound over full cycles while controlling drawdowns, aligning with your 10-year and downside parameters.
Evidence
“The endowment is managed to maximize annualized returns, net all costs, over rolling 10-year periods, while adhering to the stated risk parameters.” “The endowment is structured to avoid annualized shortfalls exceeding 3 percent, relative to the mean return of endowments reporting to the National Association of College and Universities Business Officers (NACUBO), over rolling 10-year periods.” “It is deployed in a manner that seeks to avoid 25 percent or greater peak-to-trough declines in inflation-adjusted unit value, excluding spending.”
5. Your spending policy and total-return approach favor managers who can contribute consistent total return to support a 5% distribution.
Our strategy targets durable, repeatable total returns through capital appreciation (and selective income), supporting stable endowment spending.
Evidence
“To achieve its long-term rate of return objectives, Middlebury relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized gains) and current yield (interest and dividends).” “The Board of Trustees approves a distribution of investment return... Calculations are performed for individual endowment funds at a rate of 5.00%.”
6. You have a clear fossil-fuel divestment plan and are increasing sustainability-aligned investments.
We maintain minimal exposure to fossil-fuel E&P and can articulate our ESG approach, aligning with your Energy2028 priorities.
Evidence
“Since mid-2019, Middlebury’s investment manager, Investure, has not directly invested any new dollars on Middlebury’s behalf in specialized private investment funds that focus on fossil fuels.” “Energy2028 commits Middlebury to divesting its endowment of fossil fuel direct investments... 100 percent by 2034” “While phasing out of fossil fuel investments, Middlebury has also been increasing it exposure to sustainability related investments... As of 2023 Middlebury’s portfolio sustainability investments were 20% of the portfolio.”
7. You use alternatives and hedging/derivative tools to reduce portfolio volatility and diversify beyond traditional beta.
Our low-correlation return profile and use of prudent hedges can serve as a diversifier within your ‘alternative equities’/hedge fund sleeve.
Evidence
“Other assets, which include but are not limited to hedging, derivative, or diversification options, are also used to reduce risk and overall portfolio volatility.” “Alternative equities — — — 350,874 350,874”
8. You maintain a strong orientation to equity and to strategies that exploit market inefficiencies.
Our concentrated, best-ideas global/EM equity approach is designed to capitalize on inefficiencies—consistent with your equity-oriented, inefficiency-seeking mandate.
Evidence
“has developed a diversified endowment investment portfolio with a strong orientation to equity investments and to strategies designed to take advantage of market inefficiencies.” “The endowment’s long-term horizon allows for a large allocation to equity-oriented strategies, where the potential for long-term capital appreciation exists.”