University of Houston Adds to Hedge Fund Portfolio
The University of Houston’s $1.1 billion endowment made one hedge fund commitment during its August 21 committee meeting, allocating $20 million to Broad Reach Investment Management.
The global macro hedge fund invests across industries and geographies and has achieved annualized returns of 16.8% as of June 30, 2024., according to a presentation from NEPC.
Broad Reach is managed by Bradley Wickens, CIO and portfolio manager, and takes a fundamental approach to research and investing while also relying on quantitative inputs generated by the systematic sub-strategy. The three sub-strategies will vary in risk consumption, with most of the risk allocated to special situations and discretionary macro over the cycle.
The endowment portfolio has allocated $73 million to hedge funds, with full redemptions permitted for hedge funds managed by HBK Capital Management ($21 million) and Davidson Kempner Capital Management ($19 million). For the fiscal year ending June 30, 2024, hedge funds recorded roughly 11% annualized gains in its investment portfolio.
The University of Houston’s hedge fund portfolio also includes SRS Partners ($12 million) and 400 Capital Credit Opportunities ($19 million).