The University System of Maryland Foundation

1. You actively allocate to hedge funds/absolute return and value idiosyncratic, lower-correlation return streams.

We run a concentrated, high-conviction global equity strategy with a low-correlation profile designed to complement core equity and help dampen drawdowns—aligned with your ‘marketable diversifiers’/absolute return sleeve.

Evidence

“Investments that are included in this category generally include investments in private risk assets and investment funds as well as offshore hedge funds.” “Alternative investments may include absolute return funds, long/short equity hedge funds and private capital funds for which there may be no readily determinable market value.” “They offer idiosyncratic return/risk profiles that are generally less volatile than growth assets; thereby aiming to reduce overall portfolio risk while earning attractive returns.”

2. You maintain a large, flexible sleeve in liquid public equities with defined (weekly–multi‑year) liquidity terms.

Our fund offers institutional liquidity terms and operates in liquid public markets, fitting within your Public Risk Assets/public equity allocation.

Evidence

“approximately 55% of total endowment assets is invested in public markets, where assets have readily observable values.” “TARGET WEIGHTS Safe Assets 3% Private Risk Assets 30% Public Risk Assets 52% Intermediate Assets 15% ASSET CLASS POLICY TARGET” “Public equity 820,854 366,276 — Weekly–3 years”

3. You evaluate success over multi‑year horizons and emphasize risk‑adjusted outcomes over short‑term benchmark tracking.

We have a long track record and manage to multi‑year, risk‑adjusted results—well aligned with your evaluation framework.

Evidence

“The endowment is a long-term investor (i.e., perpetuity), and its performance is best observed in the multi- year performance numbers (3-year/5-year/10-year), and not on a monthly, quarterly or yearly basis.” “Over the past three years, the endowment averaged a 7.6 percent return per year, meeting its long- term target even though it didn’t fully keep pace with its benchmark.” “Looking at return generation and risk mitigation in tandem, the endowment continues to earn attractive returns in a risk efficient manner over long-term periods.”

4. You seek global diversification, including by geography, and explicitly invest for global equity exposure.

Our global mandate (with EM capability) provides geographic diversification and differentiated sources of alpha within your public equity/marketable diversifier sleeves.

Evidence

“We purposely design the portfolio for long-term diversification among factors such as geography, strategy, sector, liquidity and instrument or investment vehicle type.” “The Foundation invests in equity securities to gain exposure to the overall direction of global equity markets.”

5. You are comfortable allocating to external managers via LPs and SMAs, with institutional controls (audits, NAV reporting).

As an entrepreneurial, owner‑managed firm, we offer institutional governance, audits, and transparent reporting in commingled or SMA formats you already use.

Evidence

“These investment funds are held as units or interest in institutional funds or limited partnerships, which are stated at NAV or its equivalent.” “Separately managed accounts represent vehicles that are managed by external investment managers that trade and hold securities on the Foundation’s behalf.” “The Foundation’s private investments are held with sophisticated investment managers who received audited financial statements during the year that aid in management’s ability to approximate fair value.”

6. You manage to steady liquidity to fund spending and prefer managers that support predictable distributions.

We offer liquid terms and a low‑correlation return profile designed to be additive without impairing your ability to meet a 4% spending policy.

Evidence

“In fact, roughly half of invested capital can be converted into cash within less than one year, with a portion of these assets being exchange-listed and traded.” “The portfolio’s allocation to public risk assets provides market exposure and the liquidity needed to support recurring program expenditures as they become due.” “USMF has adopted investment and spending policies for the endowment that seek to provide a steady and sustainable distribution of funds to support operations at its various institutions.”

7. You maintain both index‑tracking and active sleeves, expecting strong risk‑adjusted returns from differentiated managers.

Our concentrated, high‑conviction process targets alpha and strong risk‑adjusted returns, complementing your benchmark‑aware core with an active, differentiated sleeve.

Evidence

“Some of investments will track closely to market indices, with a goal to earn or exceed the benchmark return. Others enhance portfolio level diversification while targeting strong risk adjusted returns.” “with the objective of achieving superior risk-adjusted returns to grow the corpus of the capital base and provide capital for spending distributions as directed by constituents.”