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Commonfund’s First Invitational Diverse Manager Day

January 23, 2020  | by Caroline Greer

Investment Strategy | Responsible Investing

On January 16th Commonfund held its first invitational Diverse Manager Day. The day was made possible as a result of the success we had from submissions to the Diverse Manager Portal launched last fall.

Commonfund developed the dedicated Diverse Manager Portal1 as part of our effort to expand our Diverse Manager Database; to accelerate the inclusion of diverse managers in client portfolios; and to give clients access to a broader array of investment talent. The Portal was open for three months from September 1st to December 1st and invited equities, fixed income and credit, hedge fund and real estate managers to submit performance, a presentation and a due diligence questionnaire for Commonfund review.

Prior to the Portal’s launch, the Commonfund Diverse Manager Database had identified a known universe of approximately 994 diverse managers across all asset classes, 672 of which were equities, fixed income and credit, hedge funds and real estate focused.

Over the three-month period that the Portal was open, we received 124 submissions from 64 investment firms. Approximately 53 percent of the submissions were for equities, 24 percent for hedge funds, 17 percent for fixed income, four percent for private credit and two percent for real estate:

Strategy Composition of Diverse Manager Day Submissions

The distribution of diversity of submissions is more complex, but the following chart gives a sense of the balance of submissions among women, minorities, veterans, and those with disabilities.

After completing full qualitative and quantitative analysis of all 124 submissions, Commonfund invited nine managers to the Diverse Manager Day to present to our equity, fixed income and hedge fund teams.

We met with three equity managers, three hedge funds, and three fixed income managers that spanned strategies as varied as small cap US, emerging and frontier markets, healthcare, convertibles, fixed income and high yield.

Diversity Composition of Diverse Manager Day Submissions

It is too early to determine whether any of these managers will be included in client portfolios, but it is an important step in the expansion of our diverse manager investment efforts.

Read more about the differences between minority and diverse managers.

1 Diverse managers are defined by 33% or greater diverse ownership at the time of investment. Private investment manager ownership stakes may be diluted over time. Diverse managers include US citizens who are people of color, women, veterans, people with disabilities and “others” not captured by the preceding categories.

Authors

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Caroline Greer is a member of the Commonfund Asset Management Investment team and is primarily responsible for the design, tailoring, and implementation of custom investment solutions for clients through asset allocation recommendations, portfolio oversight and analysis, and tactical rebalancing of client portfolios. Caroline currently serves as the inaugural Chairperson of the Commonfund Diversity and Inclusion Office and is also a member of the Commonfund Asset Allocation Committee. Previously, Caroline focused on hedge fund manager due diligence and portfolio management. Prior to joining Commonfund, she served as a Partner and Principal for Contego Capital Management, LLC, specializing in customized funds of hedge funds. She was responsible for sourcing, evaluating and monitoring hedge fund managers across a full range of strategies. Prior to joining Contego, Caroline was a Senior Vice President for Oppenheimer and Co. where she co-managed their funds of hedge funds program and monitored Oppenheimer’s private equity fund. Caroline began her career at Montrose Advisors, a boutique financial advisor specializing in managing customized funds of hedge funds and private equity and venture capital portfolios. In 2015, Caroline was named one of the 50 Leading Women in Hedge Funds globally by The Hedge Fund Journal. Caroline received a B.A. in Political Science from the University of Toronto, and an M.A. and M.Phil. from Columbia University of New York.
Caroline Greer
Managing Director, Chartered Investment Manager (CIM®)
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Disclaimer

Information, opinions, or commentary concerning the financial markets, economic conditions, or other topical subject matter are prepared, written, or created prior to printing and do not reflect current, up-to-date, market or economic conditions. Commonfund disclaims any responsibility to update such information, opinions, or commentary. To the extent views presented forecast market activity, they may be based on many factors in addition to those explicitly stated in this material. Forecasts of experts inevitably differ. Views attributed to third parties are presented to demonstrate the existence of points of view, not as a basis for recommendations or as investment advice. Managers who may or may not subscribe to the views expressed in this material make investment decisions for funds maintained by Commonfund or its affiliates. The views presented in this material may not be relied upon as an indication of trading intent on behalf of any Commonfund fund, or of any Commonfund manager. Market and investment views of third parties presented in this material do not necessarily reflect the views of Commonfund and Commonfund disclaims any responsibility to present its views on the subjects covered in statements by third parties. Statements concerning Commonfund’s views of possible future outcomes in any investment asset class or market, or of possible future economic developments, are not intended, and should not be construed, as forecasts or predictions of the future investment performance of any Commonfund fund. Such statements are also not intended as recommendations by any Commonfund entity or employee to the recipient of the presentation. It is Commonfund’s policy that investment recommendations to its clients must be based on the investment objectives and risk tolerances of each individual client. All market outlook and similar statements are based upon information reasonably available as of the date of this presentation (unless an earlier date is stated with regard to particular information), and reasonably believed to be accurate by Commonfund. Commonfund disclaims any responsibility to provide the recipient of this presentation with updated or corrected information. Past performance is not indicative of future results. For more information please refer to Important Disclosures.

Disclaimer

Information, opinions, or commentary concerning the financial markets, economic conditions, or other topical subject matter are prepared, written, or created prior to printing and do not reflect current, up-to-date, market or economic conditions. Commonfund disclaims any responsibility to update such information, opinions, or commentary. To the extent views presented forecast market activity, they may be based on many factors in addition to those explicitly stated in this material. Forecasts of experts inevitably differ. Views attributed to third parties are presented to demonstrate the existence of points of view, not as a basis for recommendations or as investment advice. Managers who may or may not subscribe to the views expressed in this material make investment decisions for funds maintained by Commonfund or its affiliates. The views presented in this material may not be relied upon as an indication of trading intent on behalf of any Commonfund fund, or of any Commonfund manager. Market and investment views of third parties presented in this material do not necessarily reflect the views of Commonfund and Commonfund disclaims any responsibility to present its views on the subjects covered in statements by third parties. Statements concerning Commonfund’s views of possible future outcomes in any investment asset class or market, or of possible future economic developments, are not intended, and should not be construed, as forecasts or predictions of the future investment performance of any Commonfund fund. Such statements are also not intended as recommendations by any Commonfund entity or employee to the recipient of the presentation. It is Commonfund’s policy that investment recommendations to its clients must be based on the investment objectives and risk tolerances of each individual client. All market outlook and similar statements are based upon information reasonably available as of the date of this presentation (unless an earlier date is stated with regard to particular information), and reasonably believed to be accurate by Commonfund. Commonfund disclaims any responsibility to provide the recipient of this presentation with updated or corrected information. Past performance is not indicative of future results. For more information please refer to Important Disclosures.