University of South Carolina Educational Foundation

Generated outreach message alignment report
1. You maintain a dedicated hedge fund sleeve and benchmark to HFRI, with active allocations to external hedge funds.
We run a high-conviction, low-correlation hedge fund with a long track record—well-suited to a program that already allocates to hedge funds and measures against HFRI.
Evidence
“Hedge Fund Composite” “Benchmark: Target Weighted Index is currently comprised of: • 50% Russell 3000 Index • 20% MSCI AC World Index ex-US • 20% Bloomberg US Aggregate Index • 10% HFRI of Funds Index” “The Foundation holds ownership shares in five hedge funds with investment strategies including fund to fund long/short equity managers.”
2. You are comfortable with varied hedge fund liquidity terms and even multi-year restrictions, and note you can be unaffected by liquidity constraints.
Our strategy is long-term and high conviction; your flexibility on liquidity (monthly to annual, with lockups) supports partnering with managers focused on durable alpha rather than short-term flows.
Evidence
“There is no minimum holding period... may be redeemed on the last business day of each month upon written notice... three days prior...” “Redemption from the Taconic Opportunity Fund, Ltd. has a two-year restriction... Subsequently... may be redeemed annually and requires 60-day notice...” “The HBK Offshore Fund, Ltd. may be redeemed quarterly and requires written notice... 90 days prior...” “Management believes that the investment strategies employed and availability of other Foundation resources allow the Foundation to be unaffected by the liquidity restrictions.”
3. You explicitly target non-U.S. equity exposure, including ACWI ex-US, and have an International Equity Composite.
Our global mandate and emerging markets capability can extend your ex-U.S. opportunity set while contributing differentiated alpha.
Evidence
“International Equity Composite” “Benchmark: Target Weighted Index is currently comprised of: • 50% Russell 3000 Index • 20% MSCI AC World Index ex-US • 20% Bloomberg US Aggregate Index • 10% HFRI of Funds Index”
4. You seek diversifying strategies outside traditional stocks and bonds to add unique growth exposure or risk reduction.
Our concentrated, low-correlation approach is designed to diversify equity and bond beta while targeting asymmetric returns.
Evidence
“Diversifying Strategies includes alternative assets generally outside of liquid stocks and bonds, which are additive to the portfolio by providing unique growth exposures or risk reduction.” “The Foundation holds ownership shares in five hedge funds with investment strategies including fund to fund long/short equity managers.”
5. You emphasize long-term total return and are willing to accept volatility to meet a CPI + payout + fees objective (~7–8% long-term).
Our high-conviction, owner-managed strategy is built to compound over multi-year periods and align with real-return and spending needs.
Evidence
“Our investment strategy understands the long-term nature of the Foundations and believes that investing in assets with higher return expectations outweighs their short-term volatility risk.” “Under this policy... intended to produce investment returns at least equal to inflation... plus a 4.25% pay out and 1.25% for associated fees...” “Accordingly, over the long term, the Foundation expects the current spending policy to allow its endowment to grow at an average of 7 to 8 percent annually.”
6. You allow tactical and opportunistic allocations (e.g., real assets and distressed debt).
As an entrepreneurial manager with a flexible global remit, we can pursue off-benchmark opportunities when they offer compelling risk/reward.
Evidence
“Examples of tactical positions include Real Assets (REITS, MLPs, energy, etc.) and distressed debt.”
7. You allocate through external pooled partnerships valued at NAV (including offshore funds), indicating comfort with external manager structures.
We offer an external, capacity-constrained fund structure designed to align with institutions already allocating via NAV-based vehicles.
Evidence
“Investments consist of... alternative investments (including hedge funds and private equity partnerships), which are carried at fair value.” “The following table summarizes investments for which fair value is measured using the NAV per share practical expedient... for partnerships and hedge funds...” “Hedge funds at NAV: Graham Global Fund II SPC, Ltd.... Taconic Opportunity Fund, Ltd.... HBK Offshore Fund, Ltd.... Och-Ziff Overseas Fund II, Ltd.”