1. You run a total-return endowment model that reinvests returns above payout to preserve purchasing power and grow principal.
A concentrated, high-conviction strategy designed for compounding and low correlation can help deliver excess total return that supports real growth of the endowment.
2. Your endowment is intended to exist in perpetuity, signaling a long-term investment horizon for manager relationships.
An owner-managed firm with a long track record and patient, high-conviction approach is aligned with perpetual capital and long-term compounding objectives.
3. Endowed assets are invested through The UCLA Foundation’s pooled endowment fund.
This centralized, pooled structure suggests a process for selecting external strategies that can enhance total return and diversification—an opportunity for a differentiated, low-correlation global hedge fund.
4. Investments are managed in accordance with UCLA’s endowment investment policies.
An institutional, policy-aware manager that can meet reporting, risk, and governance standards—while delivering high-conviction, global returns—fits this framework.
5. When payout isn’t needed, it can be added back to principal—prioritizing compounding over current income.
A strategy focused on total return rather than yield—especially one with a low-correlation profile and emerging markets capability—can be an effective engine for principal growth.