The $126 million University of New Mexico endowment, Albuquerque, is embarking on a unique all-capitalization investment strategy for its entire equity portfolio.
The fund has hired two all-cap equity managers to run $32 million each, according to Charles Vickers, endowment manager.
MFS Asset Management Inc., Boston, will run an all-capitalization growth portfolio modeled after the firm's MFS Research mutual fund, which invests in the favorite stock picks of the firm's research analysts.
MacKay-Shields, New York, will run an all-cap value portfolio.
The two managers will run the endowment's entire domestic stock portfolio. The assets formerly were run by Sirach Capital Management, Seattle, for growth and Smith Barney Capital Management, New York, for value. Both portfolios were primarily large-cap.
"We were not necessarily comfortable making specific allocations to large- and small-cap...When we started this search a lot of people weren't sure what we meant by an all-cap manager, but it's catching on more and more," he said.
William M. Mercer Inc. assisted.
In addition to its approximately 50% in domestic equities, the fund has 10% in international equities in the Scudder Institutional International Trust, which also follows an all cap-type strategy, he said.