Northwestern University - Message Points

1. You’re concentrating capital with your highest‑conviction managers.

We run a concentrated, best‑ideas portfolio managed by an owner‑operator team—exactly the kind of high‑conviction setup you’re leaning into.

Evidence

“We have sought to increase the concentration of our holdings with our highest-conviction managers and to reduce exposure to asset classes that are more efficient and where manager skill may be less able to add value.”

2. You allocate to global, active public equity (including long‑short) across developed and emerging markets and benchmark to global indices.

Our mandate is global with dedicated emerging markets capability and an active, research‑driven approach that can be measured against MSCI ACWI and equity-hedge benchmarks.

Evidence

“Public Equity Global investments in US and foreign equity securities, primarily invested in active strategies, including long-short equity, across all sectors and market capitalizations in developed and emerging market countries. 29.0% 31.8%” “Public Equity MSCI ACWI Index / HFRI Equity Hedge (Total) Index”

3. You prefer to partner with external managers and explicitly seek ‘superior outside investment managers.’

As a boutique, owner‑managed firm, we align with your external‑manager model and emphasize partnership, transparency, and performance.

Evidence

“For the majority of the investments in the endowment, the Investment Office employs outside managers, partnering with many of the world’s most successful and thoughtful investment managers.” “This performance goal is to realize superior gains within each asset class through the selection of superior outside investment managers.”

4. You emphasize stock‑selection alpha and beating both your composite and the simple 70/30 benchmark.

Our high‑conviction, bottom‑up process targets idiosyncratic alpha with low benchmark overlap, aiming to exceed ACWI and add value over a 70/30 proxy through cycle.

Evidence

“Our public equity holdings generated a solid return of 17.2 percent, exceeding these indices as investment manager stock selection alpha more than offset lower returns from more evenly distributed geographic and market sectors versus benchmarks.” “We also strive to add value to both a custom benchmark and a simple 70 percent equity / 30 percent bond portfolio.”

5. You value equity‑like returns with low correlation in your Absolute Return sleeve.

Our strategy’s low correlation profile and risk management can complement your diversifiers while still compounding at equity‑like rates.

Evidence

“Absolute Return Portfolio of credit and distressed, multi-strategy, and uncorrelated investments, which aims to provide equity-like returns with a low correlation to global equities and fixed-income markets.” “Our diversifying Absolute Return managers had another very solid year... Absolute Return funds generated a 14.6 percent return for the year.”

6. You look for persistent, long‑term ‘winning franchises’ and emphasize results over decades.

We bring a long, cycle‑tested track record with a stable, owner‑managed team—aligned with your focus on persistence and durability.

Evidence

“Given the high dispersion of manager returns in these asset classes as well as demonstrated persistence for winning franchises, the Investment Office believes it can generate meaningfully higher alpha (or manager excess return) for the University.” “For the last 20 years, the Long-Term Balanced Pool has earned an annualized net return of 8.3 percent, exceeding the passive global 70 percent equity / 30 percent bond index by 1.4 percent annually and surpassing inflation by 5.8 percent.”

7. You incorporate ESG into manager selection and expect integration and disclosure.

Our process integrates material ESG risks and supports holdings‑level transparency to meet your reporting and stewardship expectations.

Evidence

“We will incorporate ESG issues into investment analysis and decision-making processes.” “In choosing investment managers, the Investment Office carefully evaluates their integrity, character, and principles and the extent to which an investment manager considers ESG factors in making and holding investments.”

8. You want to back talented, driven investors.

As an entrepreneurial, owner‑managed firm with meaningful GP capital, we offer strong alignment and the drive you prioritize.

Evidence

“Most importantly we seek to partner with the most talented and driven investors we can find.”