University of Kentucky - Message Points

1. You allocate to external managers and have a staff/consultant-led process to appoint, monitor, and evaluate them.

We’re an entrepreneurial, owner-managed hedge fund used to working within institutional due‑diligence frameworks and consultant processes, making onboarding and ongoing oversight straightforward.

Evidence

“In collaboration with the Consultant, the Staff will appoint, monitor and evaluate external investment managers for the investment asset allocation and strategies approved by the Committee.” “Global Equity – The allocation will consist of public and private equity-oriented funds managed by external investment firms.”

2. You maintain a dedicated Diversifying Strategies sleeve targeting low equity sensitivity (beta ~0.25–0.35) across hedge fund styles.

Our low-correlation, high‑conviction strategy fits a diversifying role alongside public equities and has historically delivered asymmetric outcomes with limited market beta.

Evidence

“Diversifying Strategies – The allocation will consist of a diverse group of managers and strategies with a goal of earning positive returns over time, but with low sensitivity to the public equity markets.” “The beta (sensitivity to equity markets) of the diversifying strategies allocation is generally expected to fall between 0.25 and 0.35 when measured over a multi-year period.” “Included in this category are strategies such as long/short equity, low beta equity, event-driven and special situations investing, merger and capital structure arbitrage, quantitative strategies, global macro, long/short credit, and distressed securities.”

3. You emphasize global equity exposure and recently highlighted the benefit from non‑U.S. stocks; you also allocate to dedicated emerging markets managers.

We run a global, high‑conviction portfolio with deep emerging markets capability that can complement your ACWI‑anchored policy and existing EM exposures.

Evidence

“This year, our endowment funds also benefited from global diversification thanks to the outperformance of non-U.S. stocks.” “GLOBAL EQUITY 64% Public 40 MSCI All Country World IMI Index (ACWI IMI)” “ARGA Emerging Markets Equity Fund International Equity 51,761,060$”

4. You evaluate managers over very long horizons (10+ years) and select those intended for long-term roles.

Our firm has a long, durable track record and an owner‑managed structure aligned with decade‑long evaluation windows.

Evidence

“Therefore, performance compared to this benchmark will be evaluated only over very long periods (ten years or more).” “At the University of Kentucky, our endowment investment strategy takes a long-term view — think of it as planting seeds today for a more vibrant campus tomorrow.”

5. You expect active managers to outperform benchmarks and be above-median versus peers, while targeting a 7.5% long-term net return.

Our concentrated best‑ideas approach is explicitly designed to deliver benchmark‑beating, risk‑adjusted returns over full cycles.

Evidence

“It is expected that, at each level, the Endowment, the asset class, and the individual active managers should exceed the index return and should be above median against the appropriate peer group universes over full market cycles.” “The primary performance objective of achieving a long-term total return, net of fees and expenses, of at least 7.5%.”

6. You actively source new and niche hedge fund managers and review manager letters to understand process and decision-making.

As a smaller, entrepreneurial manager, we offer direct access, transparency, and detailed communications that align with your sourcing and diligence style.

Evidence

“as well as source new managers to potentially partner with in the future.” “I really enjoyed reading the quarterly manager letters from a niche group of hedge funds, allowing me to better understand the process behind their investments and gain exposure to non-traditional investing strategies and asset classes.” “Sino Vision - Market Neutral Fund Diversifying Strategies 15,585,100$”

7. You are comfortable with less-liquid partnership structures and offshore funds, often with quarterly or annual liquidity.

If helpful, we can accommodate institutional terms (e.g., quarterly liquidity/locks, offshore vehicles) that align with your alternatives framework.

Evidence

“These investments are typically structured within a less liquid partnership structure with a lock-up.” “These funds typically allow quarterly or annual liquidity, reflecting the fact that certain investments can be less liquid.” “HBK Multi-Strategy Offshore Fund Ltd. Diversifying Strategies 24,736,234$”