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Fund and Manager Selection

The investment staff is responsible for sourcing and selecting potential new managers, as well as continuously reviewing existing managers.

When identifying and selecting a new manager, a member of the investment staff will visit the managers' offices at least once and the management team will visit the university at least once to determine the following:

  • A proper fit with the portfolio and current asset allocation needs
  • The fund's competitive edge
  • Strength of its business and organizational structure
  • Manager's investment and risk management process
  • Expected returns and risks
  • Assets under management, its growth or decline and the manager's ability to handle the size
  • Valuation policy and transparency
  • Operational and personnel issues

Investment staff also performs reference checks, background checks and legal reviews on key personnel. In addition to vetting new managers, the investment staff continuously reviews existing managers with the following:

  • Review of monthly and/or quarterly performance vs. performance over time, benchmarks and peers
  • Investment staff meetings about the investment environment, managers and funds, news alerts, industry issues and capital flows
  • Participation in investor or limited partner advisory boards
  • Review of annual reports and audited financials
  • Discussions with existing managers about the environment, fund performance, valuations and management changes
  • Monitoring underperforming or overly risky managers closely and terminating them as soon as possible within the partnership agreement or selling them into the secondary market if necessary

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