Vanderbilt University Endowment

1. Open to small/emerging managers and seeding relationships — even being the first institutional investor.

Directly aligns with a small-AUM, entrepreneurial, owner-managed, high-conviction fund looking for early, strategic partners.

Evidence

“For Vanderbilt, there is no such thing as a fund being too small or new.” “We believe that being an early investor in firms with smaller asset bases affords the best chance for long-term outperforming returns.” “We are discerning and have a rigorous due diligence process, but we are not afraid to be the first institutional investor in a fund or to put managers in business.” “We have an active sourcing process for small, unique, and unscalable opportunities, and we also balance smaller opportunistic managers with larger manager opportunities.”

2. Meaningful allocation to hedged strategies with an explicit role in capital preservation and stable returns during equity drawdowns.

Signals demand for low-correlation, downside-protective hedge funds — a fit for a concentrated, risk-managed long/short strategy.

Evidence

“Hedged strategies 17%” “Vanderbilt expects hedged strategies and fixed income investments to generate stable returns and preserve capital during periods of poor equity performance.” “Hedged strategies 2,104,718 Daily to annually, with 15- to 90-day notice Lock-up provision ranging from none to 2 years”

3. Active global remit including developed, emerging, and frontier markets; willingness to manage currency risk; explicit interest in Asia.

Matches a global/international, EM-capable hedge fund able to navigate cross-border opportunities and FX.

Evidence

“Global equities consist of investment funds globally diversified across public markets including U.S. markets, other developed markets, and emerging and frontier markets.” “The most common instruments utilized are futures contracts and hedes against currency risk for investments denominated in currencies other than U.S. dollars.” “Emerging markets rallied strongly after President Trump paused differential tariffs on April 9, 2025, and equities finished the fiscal year up 15% (MSCI Emerging Markets Net Total Return USD Index, NDUEEGF).” “He conducts research and manager due diligence in both the public and the private markets, with a focus on investments in Asia.”

4. Preference for flexible, unconstrained managers who can shift style, size, and net exposure; openness to long/short and derivatives.

Supports a concentrated best-ideas, high-conviction long/short strategy that actively manages gross/net and uses hedging.

Evidence

“Fund managers of these investment s have the ability to shift investments from value to growth st rategies, from small to large capitalization stocks, and from a net long position to a net short position.” “These strategies also include investments in long and short primarily credit- oriented securities.” “The consolidated financial statements contain derivatives, which consist of both internally managed transactions and those entered into through external investment managers, at fair value.” “Securities sold short $ 443,977 $ 64,793 $ - $ - $ 508,77 0”

5. Long-term, risk-aware partner focused on capital preservation and strong long-term returns; does not overreact to short-term volatility.

Aligns with a high-conviction manager with robust risk controls and a long track record aiming for steady, compounding returns.

Evidence

“As an endowment, we do not overreact to short-term market volatility.” “With a robust risk-management process we can preserve capital while generating the opportunity for strong long-term returns.” “Vanderbilt invests assets to provide a relatively predictable and stable stream of earnings to meet spending needs and attain long-term return objectives without the assumption of undue risks.”

6. Comfort investing via external vehicles (hedge funds, LPs, SMAs, commingled) and relying on manager-provided NAVs; no prescribed fund characteristics.

Facilitates engagement with a boutique hedge fund across common structures and terms without rigid AUM/vehicle constraints.

Evidence

“Vanderbilt gives consideration to certain investment funds that do not have readily determinable fair values, including private investments, hedge funds, real estate, and other funds.” “Vanderbilt may make investments through commingled vehicles, separately managed accounts, synthetic transactions, limited partnership interests, and direct investments.” “The fair values of alternative investments (interests in priv ate equity, hedge, real estate, and other s imilar funds) for which quoted market prices are not available are generally measured based on the reported partner’s capital or net asset value (“NAV”) provided by the associated external investment managers.” “No prescribed set of fund characteristics is necessary for Vanderbilt to partner with a manager.”

7. Active manager sourcing channel ('Cap Intro') and engagement with top-tier managers across geographies.

Provides a clear entry point for outreach by a differentiated, high-conviction global/EM hedge fund.

Evidence

“internal fund manager program called Cap Intro.” “top-tier money managers across different asset classes and geographies.”