Texas Permanent School Fund

Generated outreach message alignment report
1. You rely heavily on external managers and maintain a dedicated Absolute Return/Hedge Funds sleeve benchmarked to HFRI FoF (Conservative).
A boutique, owner‑managed, high‑conviction hedge fund with a low‑correlation profile can slot directly into your Absolute Return allocation and be evaluated against your preferred benchmarks.
Evidence
“Approximately 95.4% of the Texas PSF's current fiscal year-end portfolio involved some degree of external management.” “Hedge Funds 6.00 % 3.31 % 0.20 %” “10/01/2024 - 08/31/2025: Benchmark consisted of 100% HFRI Fund of Funds Conservative Index.”
2. You seek low‑correlation absolute‑return strategies and accept institutional hedge fund liquidity terms (monthly/quarterly, gates/lockups).
Our concentrated best‑ideas, low‑beta/low‑correlation strategy with measured use of derivatives and prudent leverage aligns with your Absolute Return objectives and liquidity framework.
Evidence
“Absolute Return portfolio is comprised of various investment strategies and techniques to take advantage of market inefficiencies and provide returns that are relatively uncorrelated to traditional public liquid” “Absolute Return Investments ... Multi-Strategy ... Quarterly, Semi-Annual, Distribution Provision 60-90 days ... Equity ... Monthly, Quarterly, Distribution Provision 30-90 days ... Macro ... Quarterly 93 days”
3. You invest globally and benchmark non‑U.S. equity to MSCI World ex‑US, with policy support for international diversification and FX exposure.
A global, high‑conviction manager can complement your international sleeve and provide opportunistic ex‑US ideas while operating within your benchmarked and FX‑aware framework.
Evidence
“Texas PSF is invested in global markets and experiences volatility commensurate with the underlying indices.” “05 Inception - 3/31/2024: Benchmark consisted of 100% MSCI All Country World Ex U.S. Net Index. 04/01/2024 - 08/31/2025: Benchmark consisted of 100% MSCI World Ex-U.S. Net Index.” “The investment policy of Texas PSF allows for international diversification to improve the risk and return characteristics of Texas PSF.”
4. You are consolidating into fewer, deeper Strategic Partner relationships with top‑tier managers.
As an entrepreneurial, owner‑managed boutique with a long track record and concentrated best‑ideas approach, we can be a high‑touch, high‑conviction partner that fits a streamlined roster.
Evidence
“Focus on fewer and more meaningful manager relationships.” “Through fiscal year 2025, the Corporation will cultivate relationships with top-tier investment firms, designating them as Strategic Partners.”
5. You have a Texas First initiative that, all else equal, directs allocations to managers with a Texas presence.
If helpful, we can highlight our Texas footprint and commit to on‑the‑ground collaboration to align with your Texas First priorities.
Evidence
“the Corporation is launching an initiative that, all else equal, will direct investment allocations to asset managers ... who are based in or have a presence in Texas.” “Texas First 46 Texas Firms Totaling $31.9 Billion • 17 are Texas Headquartered ... 29 Have Significant Texas Presence”
6. You are highly fee‑sensitive and measure managers on net‑of‑fees excess returns, with openness to performance‑linked compensation when targets are surpassed.
We can offer aligned, cost‑efficient fee structures emphasizing net alpha and performance‑based components that fit your governance and cost targets.
Evidence
“The Texas Permanent School Fund (PSF) Corporation's total expenses to manage the assets of the PSF are expected not to exceed 16 basis points annually.” “Investment performance is calculated using a time weighted rate of return and are net of management fees.” “Profit sharing ... based on achievement of particular profit and performance benchmarks ... paid ... when the target investment returns ... were surpassed.”
7. You are building a tactical/opportunistic program (including special situations) and value nimble, flexible implementation and multiple vehicle types.
Our concentrated, high‑conviction global mandate can deliver tactical best‑ideas, special situations, and co‑invests/SMAs to support your opportunistic return goals.
Evidence
“By the end of fiscal year 2025, the fund will formalize and implement a tactical asset allocation program, seeking to exploit mispriced opportunities to generate additional investment returns.” “Special situations” “This strategic partnership model allows for flexible asset allocation based on the best ideas ... spanning ... comingled funds, separately managed accounts, co-investments, and secondaries.”
8. You maintain an Emerging Manager program and have referenced seeding, co‑investments, and direct investments.
As a smaller, entrepreneurial manager with a long track record, we can fit your emerging manager channel and offer co‑invests alongside a concentrated flagship.
Evidence
“Emerging Manager 167,007,431 164,458,571 None None 0 - 10 years (12)” “and 1.00% Emerging Manager Benchmark.” “Co-investments, direct investments and seeding”