Southern Methodist University

Generated outreach message alignment report
1. You actively allocate to hedged strategies and hedge funds (e.g., long/short equity, event‑driven, multi‑strategy) and are comfortable with typical hedge fund terms.
As a concentrated, high‑conviction, owner‑managed hedge fund with a low‑correlation profile, we fit well within your hedged strategies bucket and standard fund structures.
Evidence
“Hedge fund allocations include long/short equity, event-driven, and multi-strategy approaches.” “These terms are typical for hedge fund and private equity arrangements.”
2. Manager selection is your primary driver of excess returns, with emphasis on track record, strategy differentiation, team quality and alignment.
We are an entrepreneurial, owner‑managed firm with a long track record and a differentiated, concentrated best‑ideas approach designed to align strongly with LPs.
Evidence
“Manager selection is the primary driver of excess returns, with the investment office evaluating firms based on track record, strategy differentiation, team quality, and alignment of interests.”
3. You prioritize diversifying, lower‑correlation returns to reduce volatility and hedge adverse macro environments.
Our low‑correlation return profile and risk‑management ethos are built to complement your endowment model and dampen equity beta while seeking attractive risk‑adjusted returns.
Evidence
“the endowment’s broadly diversified portfolio is designed to reduce the volatility of returns.” “These investments provide returns with lower correlation to public equity markets, reducing portfolio volatility and improving risk-adjusted performance.”
4. You maintain a global orientation—public equities domestic and international form the core—and you evaluate results versus a global 70/30 benchmark.
Our global mandate (including EM capability) lets us source best ideas across regions and provide differentiated alpha versus a global policy benchmark.
Evidence
“Public equities, both domestic and international, form the core liquid allocation.” “Over the past five years, the portfolio has delivered an annual return of 7.4%, surpassing the 7.0% return of a passive 70/30 index of global stocks and bonds over the same period.”
5. You target long‑term total returns above spending plus inflation and invest for intergenerational equity.
Our long track record and high‑conviction approach are designed to generate real returns over full cycles, supporting purchasing‑power preservation while controlling risk.
Evidence
“Under this policy, as approved by the Board of Trustees, the endowment assets are invested within risk tolerances of the University to provide an expected total return in excess of spending and inflation over the long term.” “The endowment is invested with the goal of intergenerational equity. We aim to provide liquidity to satisfy today’s needs and with time grow the corpus to support SMU into perpetuity.”
6. You are comfortable with illiquidity, withdrawal notice periods, and fund lock‑ups where appropriate.
Our concentrated, best‑ideas portfolio pairs well with patient capital and modest liquidity terms that protect alpha and capacity for LPs.
Evidence
“Additionally, such funds in which the University invests may restrict both the transferability of the University’s interest and the University’s ability to withdraw. In light of such restrictions imposed, an investment in these funds is illiquid and subject to liquidity risk.” “1 With 3 business days to 30 days’ notice 2 With 30 to 90 days’ notice 3 With 45 to 90 days’ notice 4 Includes funds under lock up”
7. You selectively pursue co‑investments alongside trusted partners when conviction is high and fees are favorable.
As an entrepreneurial manager, we can offer high‑conviction, capacity‑constrained ideas and explore co‑invest or sidecar structures with aligned economics.
Evidence
“SMU evaluates co-investment opportunities selectively alongside existing GP partners, participating when conviction is high and fee economics are favorable.”