Wellesley College

Generated outreach message alignment report
1. Preference for concentrated, benchmark-agnostic, fundamental managers
Aligns with a high-conviction, best-ideas portfolio that runs with high active share and positions sized by conviction.
Evidence
“Typical characteristics of Wellesley managers include: long investment horizons; a bias toward fundamental, bottom-up investing; a focus on valuation; relatively concentrated portfolios that often show little relationship to benchmarks; and strong organizations.” “Size positions to reflect conviction and liquidity characteristics”
2. Meaningful allocation to hedge/absolute return funds in NAV-based, commingled vehicles with monthly/quarterly liquidity
Supports a hedge fund structure offering standard fund liquidity and NAV reporting.
Evidence
“Absolute return 688,246 617,154” “The College’s interests in alternative investment funds such as hedge, private equity, and absolute return, are reported at the net asset value (NAV) reported by the fund managers as a practical expedient to fair value...” “Monthly 536,414 ... 164,213 ... 700,627” “Quarterly 175,532 ... 136,030 ... 311,562”
3. Global orientation with MSCI ACWI equity benchmark and emphasis on geographic diversification
Fits a global mandate with emerging markets capability that can complement an ACWI-based program.
Evidence
“We use a blend of 65 percent stocks (as measured by the MSCI ACWI) and 35 percent bonds (as measured by the Citigroup World Gov’t Bond Index).” “Diversify across asset classes, geographies and strategies”
4. Interest in uncorrelated/absolute return exposures to diversify beyond a 65/35 profile
A low-correlation return stream can improve portfolio diversification and risk-adjusted returns.
Evidence
“Combine uncorrelated strategies” “Semi-marketable investments include strategies focused on absolute return.” “The Policy Portfolio was established with the goal of balancing long-term returns and risks by increasing portfolio diversification through the allocation of assets to less efficient asset classes.”
5. Emphasis on long-term, patient, valuation-driven investing and partnerships
Matches an entrepreneurial, owner-managed firm with a long track record and patient, high-conviction process.
Evidence
“Typical characteristics of Wellesley managers include: long investment horizons; a bias toward fundamental, bottom-up investing; a focus on valuation...” “Seek to invest in strategies that benefit from patient capital” “Avoid short-term speculative activity” “the Investment Office team aims to add value within asset classes through long-term partnerships with strong performing, highly ethical investment managers.”
6. Openness to smaller/capacity-constrained managers who protect alpha
Supports boutique, small-AUM managers that cap capacity to preserve performance.
Evidence
“Limits on strategy and firm AUM that reflect the capacity of a team and strategy to generate alpha, net of fees.”
7. Strong responsible-investing and ethics requirements (including fossil-fuel manager exclusion)
An owner-managed firm with aligned incentives and high governance standards can meet their ethical and policy screens.
Evidence
“the College invests only with managers who meet high ethical, investment, operational and performance standards.” “investments with managers whose primary investment focus is on companies in the fossil fuels industry are prohibited;”