University of Houston System's endowment management committee approved the termination of Vulcan Value Partners from the $30 million active domestic large-cap equity portfolio it has managed for the university's $974 million endowment.
The committee at its meeting Wednesday approved the termination of the manager due to underperformance and its failure to provide useful diversification for the endowment's public equity portfolio, according to a webcast of the meeting posted on the university's website.
Vulcan spokeswoman Shelly Bridges could not be immediately reached for comment.
The endowment management committee also approved reallocating the assets to two existing passive domestic equity portfolios managed by Northern Trust Asset Management: $22 million to a Russell 3000 index portfolio, bringing it to $109 million, and $8 million to a Russell 1000 Value index portfolio, bringing it to $48 million.
As of Sept. 30, the endowment's actual allocation to public equities was 37.5%; the target is 46%.
Investment consultant NEPC assisted.
