University of Southern California

Generated outreach message alignment report
1. USC implements its allocation through external managers, indicating openness to partnering with boutique, high‑conviction hedge funds.
As an entrepreneurial, owner-managed firm with a concentrated best-ideas portfolio, we fit their preference for external active managers.
Evidence
“The Investment Office implements this Asset Allocation Policy through the selection and oversight of external asset managers and advisors.” “The Investment Office selects and oversees external asset managers and advisors to implement this policy.”
2. They maintain a large Global Equity allocation and benchmark to MSCI ACWI, signaling demand for international and emerging-markets savvy managers.
Our global mandate with EM capability and concentrated stock-picking aligns with their sizable global equity sleeve and ACWI orientation.
Evidence
“GLOBAL EQUITY: 44.1%” “70% MSCI ALL COUNTRY WORLD INDEX/ 30% BLOOMBERG U.S. AGGREGATE INDEX” “Equity Funds U.S. and Non-U.S. Equity Securities”
3. USC targets excess returns and evaluates against CPI+5% and a passive 70/30 benchmark, emphasizing outperformance at acceptable risk.
Our high-conviction, low-correlation approach seeks alpha over full cycles, aligning with their real-return and benchmark-beating goals.
Evidence
“The Investment Committee sets the Endowment Fund Asset Allocation Policy with the objective of maximizing returns at acceptable levels of risk.” “Over the 5-, 10- and 20-year periods, the endowment’s returns have compared favorably with the primary benchmark of a passive 70% stocks/30% bonds portfolio, as well as with a real return benchmark of the Consumer Price Index plus 5%...” “The university expects its endowment funds over time to provide an average rate of return of approximately 7.0% annually.”
4. They use hedge funds and total return strategies to diversify and lower portfolio risk and volatility.
Our low-correlation return profile and ability to manage net exposure can complement their diversifying alternatives and total return buckets.
Evidence
“By investing the Endowment Fund with outside managers, USC reduces its total portfolio risk through manager and strategy diversification.” “Hedge Funds U.S. and Non-U.S. Investments in Relative Value, Event Driven, Long/Short and Directional Strategies” “Total Return 18%”
5. USC accepts a range of liquidity terms, including multi‑year lockups and closed‑end funds, and invests via NAV‑reporting fund structures.
Our concentrated, long-term strategy and commingled fund structure with appropriate liquidity terms fit their tolerance for less liquid vehicles.
Evidence
“However, both the board-designated endowment fund and donor-restricted endowments contain investments with lock-up provisions that reduce the total investments that could be made available...” “Ranges between monthly redemption with 60 days notice... lock ups can be up to 5 years.” “the university uses the NAV as reported by the money managers as a practical expedient to determine the fair value of investments in investment funds which (a) do not have a readily determinable fair value...”
6. They emphasize long-term, active investing and assess results over full market cycles rather than short periods.
Our long track record and patient, high‑conviction approach are designed for full-cycle performance, aligning with their evaluation horizon.
Evidence
“Recognizing that market volatility and economic change create both risks and opportunities, the university employs a long-term and active investing philosophy that responds to changing environments and takes advantage of valuation extremes.” “Given the volatility in shorter-term periods, it is important to review the performance over longer timeframes.” “Under these policies, the return objective for the endowment assets, measured over a full market cycle, shall be to maximize the return against a blended index...”
7. USC seeks top-tier specialists in market niches, not just scale, suggesting openness to entrepreneurial, focused managers.
As a small-AUM, owner-managed firm running a concentrated best‑ideas portfolio, we fit their interest in specialist, high-conviction teams.
Evidence
“In short, our breadth and depth of investment experience allow us to partner with the very best managers in their respective market niches.” “The members of this committee consist of experienced and notable investors... help USC gain access to top-tier investment managers and opportunities.”
8. They integrate stewardship/ESG into manager research and have a fossil fuel-free policy for new investments.
If helpful, we can highlight our governance and ESG practices and lack of reliance on fossil-fuel dedicated exposures to align with their stewardship priorities.
Evidence
“Manager practices in these areas will be considered in cond ucting manager research.” “The Investment Committee of the USC Board of Trustees voted on Feb. 4 to freeze making new investments in fossil fuels and to liquidate current fossil fuel investments over the next several years.” “Further, the Investment Office encourages companies and its investment management partners to adopt best practices around sustainability and ESG governance...”