At $52 billion, The University of Texas Investment Management Company (UTIMCO) is the second largest endowment in the U.S. by AUM. Their FY 2022 Annual Report, reflecting performance from September 2021 through August 2022, shows a well-managed portfolio grappling with slowing economic growth, geopolitical turbulence, and the fastest tightening of US monetary policy in the last 40 years.
Important takeaways:
- Private Equity, Stable Value Hedge Funds, Natural Resources, Infrastructure, and Real Estate were the only positive contributors to return and helped them beat their benchmark even as their Public Equity managers were down ~23%.
- These alternatives generated outperformance of nearly +6% compared to a passive 60/40 index.
- When looking at their last five years of returns, Private Equity and Infrastructure are the only two asset classes that delivered returns greater than 20%.
The fundamental strategies UTIMCO and other large institutions apply to drive long-term outsized returns can and should be applied to certain individuals' portfolios.
- A well-diversified asset allocation structure that is professionally and prudently implemented and allocated across multiple investment strategies that, when combined, produce attractive long-term returns.
- Investing through active managers to drive higher returns and get exposure to attractive co-investment opportunities.
- A risk management strategy designed not only to weather financial storms but to take advantage of the unique investment opportunities presented by challenging economic environments.
Our Private Alternative Portfolios are constructed to replicate these institutional portfolio strategies, and their accessible minimums make it possible for individual investors to drive long-term, resilient outperformance in their own portfolios.
-Logan Henderson, Founder and CEO
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Live Member Webinar
Navigating Alternatives
Join Gridline Investment Team Senior Advisor, Doug Dougherty, on Thursday, February 23rd at 11 am EST for our February Member webinar.
In Navigating Alternatives we'll be be giving an overview of alternative investing including:
- Discuss the critical factors to consider when adding alternative asset classes such as Venture Capital, Private Equity, Private Credit, and Real Estate to your portfolio, including the primary characteristics of these asset classes
- Learn key questions to consider during investment selection, portfolio construction, and implementation
- Understand your cash flow over time as you expand your portfolio of alternatives
This webinar is open to Gridline Members. If you would like to join us, please complete the process to sign up for access and we will send you your personal link to join the live webinar.