UT Investment MGMT

Generated outreach message alignment report
1. You maintain a large, ongoing allocation to hedge funds and accept manager lock-ups and a range of liquidity terms.
Signals active appetite for external, high-conviction hedge funds with potentially low correlation—well aligned with a concentrated, entrepreneurial manager offering monthly-to-annual liquidity and lock-ups.
Evidence
“Hedge Funds 13,687,761,746.65” “Hedge Funds Redeemable Within One Year 6,120,778,903.76 ... Redeemable Beyond One Year 5,576,049,162.00 ... Nonredeemable 1,990,933,680.89” “The funds invested may be subject to a lock‑up restriction of typically one to three years before the investment may be withdrawn from the manager without significant penalty.”
2. You allocate meaningfully to emerging markets through commingled funds and have a dedicated EM target.
A global, EM-capable, concentrated manager can help fill or complement this sleeve with differentiated alpha and low correlation to developed markets.
Evidence
“International other commingled funds at fair value include non‑U.S. developed equity, emerging markets, real estate and natural resources.” “Emerging Markets Redeemable Within One Year ... Total Emerging Markets 2,196,545,446.24” “Emerging Markets 9.0% 5.6%”
3. You actively use external commingled funds and private placements valued at NAV, including with limited transparency.
Indicates comfort investing with boutique, owner‑managed managers via fund structures—ideal for a smaller, high‑conviction hedge fund vehicle.
Evidence
“Investment funds fair valued at net asset value per share or based on the System’s ownership interest in partner’s capital include externally managed” “Public market funds are invested in exchange traded funds, index funds and private placements with external investment managers who invest in equity and fixed income securities of both domestic and international issuers.” “Limited transparency – As private placement investment vehicles, these funds may not disclose the holdings of their portfolios.”
4. You maintain sizable international allocations, including non‑U.S. developed and global developed equity, with no limits on non‑U.S. denominated securities.
Supports interest in global, high‑conviction strategies that can invest across regions and currencies, including emerging markets.
Evidence
“International Other Commingled Funds: Non‑U.S. Developed Equity ... Global Developed Equity ...” “There are no limitations on investments in non‑U.S. denominated bonds or common stocks in relation to the System’s total fixed income and developed country equity exposures”
5. You allocate to managers employing long/short, leverage, and derivatives (futures and FX forwards) to manage exposures.
A high‑conviction global hedge fund with risk management via hedging and derivatives can fit alongside your flexible, unconstrained manager roster.
Evidence
“These investment managers may invest in both long and short securities and may utilize leverage in their portfolios.” “Futures contracts are used to facilitate various trading strategies, primarily as a tool to increase or decrease market exposure to various asset classes.” “The System enters into forward foreign currency exchange contracts to hedge against foreign currency exchange rate risks ... and to facilitate trading strategies”
6. You operate with a long investment horizon and accept multi‑year illiquidity.
Supports partnering with a manager running a long‑term, concentrated portfolio and willing to structure appropriate liquidity terms.
Evidence
“All investments are reported as noncurrent as these funds have an investment horizon extending beyond one year.” “It is estimated that the underlying assets of the private investments will be liquidated over seven to ten years.”
7. You dedicate sleeves to diversification/low‑correlation strategies (absolute return, stable value hedge funds, risk parity).
A low‑correlation, idiosyncratic return stream from a concentrated, global hedge fund can complement these diversifying buckets.
Evidence
“Absolute Return – 1.8% Stable Value Hedge Funds 5.0% 1.9%” “Risk Parity 8.0% 3.0%”
8. You explicitly assess key‑person risk when underwriting external funds.
A founder‑led, owner‑managed team with strong alignment and clear succession can address this diligence focus.
Evidence
“Key personnel risk – The success of certain funds is substantially dependent upon key investment managers and the loss of those individuals may adversely impact the fund’s performance.”