Our Primary Strategies
Equity investments are the core return seeking assets, providing appreciation potential and growth of income with the understanding that volatility and some risk of loss must be assumed. Equity strategies will include but are not limited to domestic, international, and global long-only stocks, equity long-short marketable alternatives, and private equity.
The requirement for an annual payout of approximately 5% each year necessitates that strategies be employed to mitigate the more volatile return streams, which requires total returns within this strategy to be positive in any given year with relatively low correlation to the broad equity market. Private credit and absolute return-oriented marketable alternatives are the core strategies.
Strategies may be employed that have the specific purpose of offsetting the effects of inflation rather than seeking return for a given level of risk. The University’s mineral assets provide the core of the inflation hedging strategy with additional real assets such as real estate and commodities, energy private equity, inflation-protected securities (TIPS), and synthetic hedges.
The investment staff is expected to monitor and take advantage of evolving market situations that inevitably develop and provide timely and/or innovative investment opportunities. Cash may be allocated to this strategy for the purpose of opportunistically hedging market risks or for other risk management approaches.