University of Michigan

Generated outreach message alignment report
1. You maintain a sizable Absolute Return sleeve explicitly targeting uncorrelated, cash-plus returns.
Our concentrated, low-correlation hedge strategy fits your Diversifiers bucket and cash-plus expectations, offering high-conviction, absolute-return outcomes with prudent risk management.
Evidence
“The goal of absolute return strategies is to provide, in aggregate, a return that is consistently positive and uncorrelated with the overall market.” “Portfolio Role Asset Class Weight Return Enhancers Equities 60% Hedges (Deflation) Fixed Income 12% Diversifiers Absolute Return 16%” “3-Month T-Bills Plus 500 bps”
2. You favor active, high-conviction managers and are comfortable with unconstrained approaches and tracking error.
We run a concentrated, owner-managed global long/short portfolio that uses derivatives selectively and can manage net exposure, aligning with your active-first posture and tolerance for tracking error.
Evidence
“The LTP’s managers primarily employ active investing strategies, though passive exposure may be utilized for asset allocation or portfolio construction reasons.” “Short-term tracking error is not a significant concern.” “A fund’s portfolio may range from being net short to net long. The LTP employs managers that use derivatives, including options, futures, swaps, puts and calls. Managers may also sell securities short.”
3. You have explicit, benchmarked Emerging Markets allocations in both equity and debt.
Our global mandate includes a deep EM capability across equities and credit, allowing us to add EM alpha and diversify return drivers within your established EM sleeves.
Evidence
“Emerging market 9.0%” “Emerging markets debt 5.0% 8.8%” “10% MSCI EM Ex FF Net Less 15 bps”
4. You regularly allocate through commingled funds to external managers and balance that with practical liquidity terms.
We offer institutional commingled vehicles with quarterly liquidity and robust operational controls, aligning with your use of commingled structures and redemption preferences.
Evidence
“Commingled funds: Absolute return $ 1,993,298 ... Global equities 478,355 ... U.S. fixed income 298,048 ...” “With the approval of the EVPCFO, the CIO may hire and delegate to external investment managers responsibility for managing investments on behalf of the university.” “Of the University’s commingled funds at June 30, 2025 and 2024, 74 percent and 86 percent, respectively, are redeemable within one year, with 57 percent and 43 percent, respectively, redeemable within 90 days under normal market conditions.”
5. You have a streamlined process for small initial allocations (≤1% of LTP) and maintain prudent single-manager concentration limits.
As a small-AUM, entrepreneurial manager, we can start with a right-sized initial ticket under your quick-approval threshold and scale based on results, fitting your concentration discipline.
Evidence
“Initial investments constituting one percent or less of the value of the LTP will be disclosed to the FAI prior to approval and will be deemed approved unless objections are raised within two days after the disclosure.” “The invested value of a liquid manager should generally not be greater than five percent of the aggregate portfolio and an illiquid manager should generally not be greater than three percent of the portfolio...” “At June 30, 2025 and 2024, no individual partnership investment represented 5 percent or more of total investments.”
6. You prioritize long-term, volatility-resilient returns to support a 4.5% spending rule and to insulate operations from market swings.
Our long track record emphasizes downside protection and smoother, low-correlation returns that can help stabilize distributions through varied market environments.
Evidence
“We smooth the impact of capital market volatility by providing for annual distributions of 4.5 percent of the seven-year moving average fair value of the University Endowment Fund.” “The success of the University’s long- term investment strategy is evidenced by strong returns over sustained periods of time and the ability to limit losses in the face of challenging markets.” “The University will continue to employ its long-term investment strategy to maximize total returns ... and insulate the University’s operations from temporary market volatility.”
7. Your global equity framework is ex–fossil fuels and you’ve leaned into climate solutions within Natural Resources.
Our global, EM-capable process avoids primary fossil-fuel producers and targets energy-transition winners, aligning with your ex-FF benchmarks and climate-solutions emphasis.
Evidence
“Passive Benchmark Component Weight MSCI ACWI Ex FF 64%” “The university will not invest in funds whose primary focus is oil reserves, oil extraction, or thermal coal extraction;” “U-M continued to benefit from an emphasis on climate solutions-related investments, which were among its highest-performing investments.”