University of Michigan, Ann Arbor, allocated up to $150 million to public equity and alternatives, in addition to directing up to 2% of the institution's $14.3 billion long-term endowment pool to an internally managed direct equity portfolio.
University regents approved the investment recommendations of Brian Smith, interim executive vice president and chief financial officer, at a May 20 meeting, board documents show.
In public equity, the university hired GQG Partners to manage $100 million in its international equity strategy, which invests globally ex-U.S. in mid- to large-cap companies.
The university also approved a recommendation to commit up to 2% of its long-term portfolio in an internally managed direct equity portfolio. "The investment process will be a systematic, rules‐based approach based on staff's unique investment insights and use quantitative tools for portfolio construction and optimization to build a diversified, risk-controlled portfolio of core holdings that has a strong likelihood of outperforming the broader market," the recommendation signed by Mr. Smith said.
In alternatives, UM committed up to $50 million to FCP Realty Fund V, a commercial property and multifamily real estate fund managed by Federal Capital Partners.