Union College, Schenectady, N.Y., allocated $2.5 million each to hedge fund manager SEG Partners and absolute-return manager Pine Grove, said Marybeth Kabalian, director of financial reporting and analysis. Pine Grove handles $32 million for the $255 million endowment, while SEG now runs close to $12 million. Funding came from reducing an emerging markets portfolio, run by Grantham, Mayo, van Otterloo, by $3.3 million, leaving it with $13 million; an active domestic small-cap to midcap growth equity portfolio, run by TCW, by $2.5 million, leaving it with $9 million; and an international equity portfolio, run by Axiom, by $1 million, leaving it with $17 million. The remaining money was moved to cash. Trustees rebalanced because of market fluctuations, she said.
Separately, investment committee members interviewed three finalists for a new private equity commitment, Ms. Kabalian said. She declined to name the firms being considered. Committee members will likely select a fund of funds, but neither that decision nor the portfolio size has been finalized, she said. The committee will meet May 21 and it might make a selection that day or decide to extend the shortlist search.
Smith Barney is consultant.