Tulane University 2015 Endowment Report by Tulane University

201

endowment report

“Tulane ROCKS!” was the title of my recent presentation to the Tulane Board of Administrators. It was my distinct pleasure to provide them with an update on our outstanding performance for fiscal year 2015. This Annual Report, our sixth edition, summarizes those results by reviewing the performance and investment activity of Tulane University’s Endowment over the last year. Markets provided many challenges last year, including a collapse in oil prices, troubling economic prospects in China, a dramatic rally in the U.S. Dollar versus our trading partners, and continued uncertainty regarding the Fed “lift off ” in interest rates.

Mr. Andrew B. Wisdom, Chair Crescent Capital New Orleans, LA Mr. Christopher M. James, Vice-Chair Partner Fund Management San Francisco, CA Mr. Darryl Berger (ex-officio) The Berger Company New Orleans, LA Mr. Michael A. Corasaniti Tourmalet Advisors Fairfield, CT

I am particularly pleased to report this year that both the Pooled Endowment and Eminent Scholars portfolios performed well, up by 6.9% and 6.7% respectively. Both portfolios have well outperformed their respective benchmarks over the trailing one, three, five and ten-year periods. These results place Tulane in the top 5% of all Endowments and Foundations over the last year, creating an additional $30 million in value-added that will continue to compound in the endowment in perpetuity. In a year in which a passive 65/35 index strategy would have produced a miserly 1.2% return, Tulane posted superior results without taking on additional systematic risk.

Mr. Louis M. Freeman (emeritus) Freeman Companies New Orleans, LA Mr. David C. Friezo Lydian Asset Management Westport, CT

Mr. Michael F. McKeever Legacy Venture Partners Greenwich, CT Mr. David M. Mussafer Advent International Corporation Boston, MA Mr. James J. Reiss Jr. (emeritus) Reiss Companies New Orleans, LA Mr. Lawrence M.v.D. Schloss Angelo, Gordon & Co. New York, NY Mr. E. Richard Yulman The Yulman Foundation Miami, FL

t a bl e o f c o n t e n t s

Mr. Phillip Greer (emeritus) Greer Anderson Capital Greenwich, CT

Letter from the CIO Endowment Support Market Events Endowment Returns

1 2–4, 12 5

Fiscal year 2015 also underscored the importance of a consistent implementation of a long termoriented investment program. We continued to grow our private equity and private real asset portfolios. We made several changes to our array of Marketable Alternatives managers to enhance our risk profile and pared exposure to market segments where we believe risks were accumulating or value was no longer evident. The slow but methodical rotation in strategies and exposures positions the Endowment to weather the uncertainty of the markets going forward. While we can never be certain we are fully prepared for what lies ahead, our strong returns in fiscal year 2015 reinforce the importance our engaged investment process.

6–11, 13

Staff 14–16 Location 17

Jeremy T. Crigler Chief Investment Officer Tulane University

fiscal year 2015 accomplishments • FY15 results were among the top 5% of all endowments and foundations • Performance exceeds benchmark over the last one, three, five and ten-year periods • Created $30.0 million of value added over benchmark during the fiscal year • Committed $75 million to new private capital partnerships • Completed an extensive review of all managers in the portfolio • Recruited a new analyst to the team • 700+ manager meetings, calls and conferences

l e t t e r f r o m t h e CIO

endowment management committee

importance of an endowment

Protection • Innovation • Commitment After 180 years, Tulane University has established itself as one of the world’s preeminent educational and research institutions. The University’s mission exists in perpetuity. However, to continuously offer new programs and new services requires an ever-growing pool of financial resources. The Endowment is unique among the University’s revenue streams since it provides perpetual support for Tulane’s students, both current and prospective. To put the power of the Endowment in perspective, a $1.0 million gift made 10 years ago and invested in the Pooled Endowment generated $515,000 to recruit the highest quality students regardless of financial need, to pay professorships and fund basic research, and to perpetuate community service initiatives. Most importantly, that original gift remains intact today, valued at more than $1.22 million, and will continue to fund Tulane in the future. We urge you to support the Endowment because these specific gifts ensure the long-term financial strength of the Institution, benefiting future generations of Tulanians.

financial aid 10% school of architecture 2% law school 6%

school of liberal arts 12%

market value

pooled endowment eminent scholars separately invested university-owned real estate gift annuities/life income trusts total endowment

$841.8 $188.1 $136.8 $32.4 $21.4 $1220.5

athletics 1% general university 13%

$1,400

centers, institutes & libraries 3%

$1,200 $1,000

school of science & engineering 8%

$800 $600 $400 $200

 pooled endowment

 eminent scholars

 separately invested

FY 2015

FY 2014

fy 2013

fy 2012

fy 2011

fy 2010

fy 2009

fy 2008

fy 2007

fy 2006

fy 2005

fy 2004

fy 2003

fy 2002

fy 2001

fy 2000

fy 1999

fy 1998

fy 1997

fy 1996

fy 1995

fy 1994

fy 1993

fy 1992

fy 1991

fy 1990

fy 1989

fy 1988

fy 1987

$0 fy 1986

total endowment (in $mm)

endowment support

a. b. freeman school of business 12% school of social work 1%

 gifts, annuities & life income trusts

school of medicine 31% school of public health & tropical medicine 3%

endowment support

components of the endowment

endowment support by program

dr. Brown with Jamie Kaplan

pitch perfect: dr. Bobby Brown Sixty years ago, Bobby Brown played third base for the New York Yankees. Alongside teammates Joe DiMaggio, Yogi Berra and Mickey Mantle, the power-hitter earned four World Series Championship rings by the time he was 26. At the same time, he was a student at Tulane University School of Medicine. The arrangement wasn’t an easy sell to then dean Max Lapham, but eventually the dean acquiesced to letting Brown pursue both of his dreams together.

endowment support

Today, Dr. Brown is empowering another medical student and athlete to pursue her dreams. He funded Jamie Kaplan’s undergraduate scholarship, and is funding her School of Medicine scholarship. A Tulane Basketball star from 2011 to when she graduated with a neuroscience degree in 2015, Kaplan had an impressive career with the Green Wave. She helped launch her team to the NCAA Division-I Basketball Tournament for the first time since 2005, played the third-most games in program history at 130, and was named American Scholar Athlete of the year—the first in program history.

anatomy exams and learning how to take a patient’s medical history. “The volume will terrify you,” Brown told Kaplan. “But you’ll adjust and do just fine. Everybody gets through it.” From 1946 to 1950, Brown “got through it” by being a student from October 15 to April 15, and then playing a full season of 154 games for the Yankees. Over his career he scored nine World Series runs, knocked in nine runs and had a slugging percentage of .707, the fourth-highest behind Reggie Jackson, Babe Ruth and Lou Gehrig. “If he can do that, then that gives me confidence that I’ll be all right these next four years,” Kaplan said.

Brown (M ’50) also had a long career as a cardiologist with a private practice in Fort Worth. His roots at the medical school run deep: both his son Peter (M ’79) and grandson John ( Jack) Dale (M ’13) also graduated from Tulane. He practiced cardiology until the early 1980s when he returned to baseball as a vice president of the American League Texas Rangers. In 1984, Brown was named American League president, a post he held for a decade. In 1992 and 1993, Brown presented the World Series Trophy to the series Despite all of her accolades, Kaplan says getting into medical school was her proudest winner instead of the commissioner of baseball. moment. “I’ve always wanted to become a doctor, and when I found out I was accepted into medical school and that I was going to receive a scholarship, I was so happy,” she Brown returns to New Orleans once or twice a year to visit his alma mater and to catch up with Jamie. One of his most special visits was in 2003, when he threw the first pitch said. “It is so great to be able to stay at Tulane.” for a game at Greer Field and Turchin Stadium. Kaplan met Brown for lunch in August, where he shared stories about everything from meeting Marilyn Monroe when she was married to DiMaggio, to serving in Korea and “I warmed up at the country club for three weeks before I came down here,” he joked. Japan when called for the “Doctors Draft.” They talked about medical school, too; about “I made it—the ball got across the plate, and I got a standing ovation.”

In fiscal year 2015, markets were largely driven by a strengthening U.S. dollar and a decline in oil prices, both of which impacted returns for a variety of asset classes. The MSCI All Country World Index ended the year with a modest gain of +1.3%, masking dispersion across markets and asset classes. The U.S. markets continued on their positive performance trajectory with the S&P 500 returning +7.4% and the NASDAQ Composite up 14.6%. Due to the strengthening of the dollar, which appreciated nearly 20% to a basket of developed market currencies, other developed markets fared less well in U.S. dollar terms. The MSCI Europe index was up 14.3% in local currency terms, but down 6.9% in U.S. dollar terms. Emerging Markets were hit particularly hard from a confluence of factors including dollar strength, fall in commodity prices, and concerns over slowing growth in China. The MSCI Emerging Index ended the period down 4.8% with the greatest losses stemming from the commodity producing nations. The impact of a 50% decline in oil was not isolated to emerging markets. The U.S. energy sector was down over 22% during the fiscal year led by softening demand coupled with supply growth. Consequently, a number of U.S. E&P companies are currently operating below break-even levels, creating substantial headwinds for the industry. While the Fed officially stopped its quantitative easing program in October 2014, its widely communicated intention to raise rates has yet to transpire. Meanwhile, other central banks are continuing on their accommodative paths. The Bank of Japan increased its purchases by 45% during the fiscal year, while the ECB introduced its own QE program in March with the goal of purchasing €60 billion in bonds on a monthly basis through September 2016. With the dispersion in central bank policies and general concerns over a slowdown in global growth, perhaps it’s not surprising that market volatility picked up meaningfully and is likely not to abate any time soon. The Endowment remains on course with its broadly diversified asset allocation policy and we have high conviction in the managers we have chosen to invest on our behalf.

fiscal year 2015 endowment highlights • T ulane’s Total Endowment increased by $36.5 million to $1.2 billion •9 7 new Endowment Funds were created during the fiscal year •$ 26.1 million in gifts and transfers were contributed to the Endowment • T he Total Endowment supported $43.1 million in University activities • T he Pooled Endowment and Eminent Scholars portfolios returned 6.9% and 6.7%, respectively

Capital Markets Performance As of Fiscal Year End 2015

1 Year 3 Years 5 Years 10 Years U.S. Equity NASDAQ 14.6% 21.0% 20.3% 10.5% Russell 2000 6.5% 17.8% 17.1% 8.4% S&P 500 7.4% 17.3% 17.3% 7.9% International Equity MSCI AC Asia ex-Japan 4.1% 9.9% 77% 9.8% MSCI AC World ex-U.S. -4.7% 10.1% 8.4% 6.2% MSCI Emerging Markets -4.8% 4.0% 4.0% 8.5% Fixed Income Barclays Aggregate 1.9% 1.8% 3.3% 4.4% Barclays 5-YR OTR TIPS -1.9% -0.6% 1.9% 3.6% Merrill Lynch HY Master II -0.5% 6.8% 8.4% 7.8% Marketable Alternatives HFRI Equity Hedge 2.4% 8.4% 6.0% 4.9% HFRI Fund of Funds 4.0% 6.3% 4.1% 3.2% HFRI Event Driven -0.8% 7.4% 6.0% 5.7%

market events

bobby brown

market events fy 2015

policy portfolio

The market value of the Pooled Endowment was $841.9 million as of June 30, 2015. The investment of Tulane University’s endowment assets is governed by the Investment Policy Statement, which is reviewed at least annually by the Endowment Management Committee of the Board of Administrators. This document sets forth governance principles, investment objectives and risk parameters. The Policy Portfolio for the Pooled Endowment included in the Investment Policy Statement represents the expected allocation of assets that will satisfy these return objectives and risk parameters. While formulated based on long-term data series, the Policy Portfolio is dynamic and responsive in its implementation to prospective economic conditions, risks and opportunities presented by market dislocations. The static benchmark uses the weights of the Policy Portfolio as shown to the right and serves as one of the Pooled Endowment’s performance benchmarks. Over the long term, the goal is to preserve the purchasing power of the Endowment after spending and inflation.

fixed income 9.0%

cash 1.0%

Private real assets 10.0%

fixed income 25.0%

global equity 35.0%

Public real assets 5.0%

public real assets 7.5%

marketable alternatives 25.0%

marketable alternatives 10.0%

private equity 15.0%

endowment returns

private equity 2.5%

historical performance 15%

11.8% 10.0% 9.2% 6.9%

6.9%

7.0%

7.4% 6.4%

5.1%

8.8% 6.4%

4.0%

1 year pooled

3 years

5 years

historical performance

eminent scholars policy portfolio

(net of fees)

10%

global equity 51.5%

private real assets 2.5%

10 years

static benchmark spending + cpi

The Endowed Chair and Endowed Professorship programs under the Louisiana Board of Regents matching program are collectively known as the Eminent Scholars Endowments. The investment of these assets is governed by the same Investment Policy Statement as the Pooled Endowment. However, the Eminent Scholars’ Policy Portfolio is tailored to satisfy specific conditions of this matching program. These conditions include greater reliance on public stocks and bonds and limited use of hedge funds and private capital. The resulting benchmark for the Eminent Scholars endowments shown is therefore different from that of the Pooled Endowment. Despite these differences, both the Eminent Scholars and Pooled Portfolios generated a 3-year annualized return of 11.8% through fiscal year-end. In recent years, the conditions of the matching program were broadened allowing for a more dynamic, diversified asset allocation, of which we continue to take advantage. Mindful of the conditions under which these funds are generously matched by the state, many of the same investment managers and strategies are used in both portfolios.

(net of fees)

15%

11.8% 10.5% 10%

9.0%

6.7%

9.0%

6.4%

6.9%

5.1%

7.2% 6.1%

5.4%

2.2% 0%

1 year

3 years

5 years

10 years

eminent static benchmark CPI + 5%

endowment returns

pooled policy portfolio

Asset Class Summaries

endowment returns

Private Equity The Endowment’s Private Equity portfolio consists of 27 firms investing in U.S. and international buyouts, venture capital, growth equity and distressed strategies. The continued rise in equity markets and robust M&A activity resulted in an impressive increase of 14.2% to the portfolio on a mark-to-market basis. Distributions outpaced contributions during the year as the portfolio benefited from successful sales of portfolio companies and liquidity in the public markets. During the year, we augmented the portfolio with the addition of a large growth manager, a small buyout manager and an education technology focused venture manager. In addition, we re-upped with two of our best managers, one focused on middle market buyouts and the other on technology enabled growth equity. Marketable Alternatives The Endowment’s Marketable Alternatives portfolio aims to achieve attractive risk adjusted returns that are uncorrelated to traditional asset classes, providing valuable diversification and downside protection in times of market stress. Containing 15 managers, the Marketable Alternatives portfolio provides exposure to strategies such as long/short equity, event-driven, distressed, structured credit and global macro. During the fiscal year, the Marketable Alternatives portfolio returned 2.9% with most of the attribution stemming from our long/short equity managers. A number of our Absolute Return and Enhanced Fixed Income Managers were impacted by their exposure to the energy sector, as well as to a few distressed/restructuring situations. We continue to optimize the risk and return trade-off of the portfolio given the current market environment, while also focusing on diversifying our exposure. During the year, we added a quantitative market-neutral equity manager and a global event-driven manager focused on mid-cap situations. We also terminated a couple of long-short equity managers and a low-net credit manager.

Public Real Assets The Endowment’s Public Real Assets portfolio is intended to provide protection against unanticipated changes in the purchasing power of the dollar and provide liquidity as the Private Real Assets portfolio gears up. Inflationary spikes can manifest in a number of ways, thus Tulane holds a diversified mix of assets that should perform well in the midst of a turbulent monetary environment. The portfolio has exposure to assets such as reperforming mortgage securities, REITs and student loans. Although headline inflation remained muted, the portfolio performed extraordinarily well, returning 20.9% over the last year. The majority of attribution came from a continued recovery in the housing market, benefiting our mortgage holdings, but REITs and student loans also added to results. Private Real Assets The Endowment’s Private Real Assets portfolio primarily consists of energy and to a lesser extent real estate funds. Despite the plunge in oil prices during the year, the portfolio generated a remarkable 6.9% return, well ahead of its benchmark that was negative. We added two managers during the year, an opportunistic real estate manager and an energy manager. We also re-upped with two of our most impressive existing managers, one focused on special situations real estate and the other on hospitality real estate. Fixed Income The Endowment’s Fixed Income portfolio includes exposure to U.S. Treasuries, investment grade bonds and high quality mortgage-backed securities. Fixed income generally provides moderate returns and dampens volatility by serving as a hedge against deflation and negative events in the equity markets. We view this portfolio as a liquidity pool under crises conditions. Looking at the 10-year Treasury as a market barometer, interest rates fell slightly, beginning the year at 2.5% yield and ending at 2.4% yield. However, the market did have considerable volatility with yields falling to a low of 1.7% in February, due to concerns over deflation and slowing global growth, and then recovering at the fiscal year end. I am pleased by the results of our portfolio over the last year that did well by historical standards, returning a respectable 2.9% versus the benchmark return of 1.9%.

endowment returns

Global Equity The Endowment’s Global Equity exposure is comprised of 14 different managers who invest in public companies domestically and abroad in both developed and emerging countries. Our results last year were driven by the outstanding performance of several of our international managers, which were up in aggregate by 6.1% even though the non-US markets were down by more than 5.3%. Our strong preference for managers with very concentrated portfolios also causes highly idiosyncratic results. Three managers in particular had significant positions in companies that were rerated by the market for specific reasons. Our preference is to rely on strong company research by our managers to drive performance instead of overall market returns. Consequently, the Global Equity portfolio returned a respectable 8.0% last year even though the MSCI All Country World Index to which it is benchmarked returned just 0.7%.

performance vs. cambridge peers

endowment returns

Total Pooled and Eminent Scholars Value Added Together, the Endowment Management Committee and staff strive to add value over the Policy Portfolio through manager selection, constructive asset allocation and tactical implementation without adding undue risk. As shown in the graph, our collective effort over the last six years has produced $70.5 million of additional value, of which $30 million was generated during fiscal year 2015. Not only did the Endowment Portfolio outpace all relevant benchmarks, it did so with lower realized volatility. Our collective investment process seeks to continuously enhance the risk-adjusted returns of the portfolio given the current economic environment in order to preserve the purchasing power of the Endowment over time.

14.0%

five year value added outperformance vs. policy

12.0% 10.0%

$70.5

$80.0 $70.0

$30.0

$60.0

6.0%

$50.0

4.0%

$40.0 $13.9 -$12.7

fy 10

$20.0

$22.1

$10.0

$15.1

$30.0

$2.2

fy 11

fy 12

FY Value Added

fy 13

fy 14 FY15

Cumulative Value Added

8.0%

x x

2.0% 0.0%

-2.0% -4.0%

1 year

top 5%

3 years

tulane

25%–50%

5 years

50%–75%

10 years

x mean bottom 5%

A wide variety of metrics, such as a constructed asset class benchmark based on our policy portfolio or a passive market index, are used to evaluate the performance of a portfolio. Most importantly, we measure our long term results versus our principal objective, which is to preserve the purchasing power of the endowment after spending and inflation. However, we also pay attention to how our colleagues at other foundations and endowments manage similar long horizon portfolios. In this regard, Tulane had an exceptional year given that the average endowment returned 0.9% and the cut-off for top quartile was 2.5%. Of the ~430 institutions reporting to Cambridge Associates, Tulane’s 6.9% for fiscal year 2015 is among the top 5% of all returns in the country and our longer term returns are now all top quartile. But much like U.S. News & World Report rankings, these data points make for good cocktail chatter but are not our primary objective. In fact, we have immense respect for our industry colleagues, each of whom has a unique risk profile driven by institutionally specific criteria. We often invest in many of the same managers and openly share our research and analysis. And so, while our peer ranking is noteworthy, it is just one metric among many that we use to evaluate results.

endowment returns

Endowment Performance vs. Cambridge Peers

separately invested funds

Phyllis Taylor (L ’66) believes in humility. She believes that solutions to major societal and environmental problems “often arise from the collective wisdom of the community, and not always from the theoretical musings of experts.” This philosophy is at the core of Tulane’s Phyllis M. Taylor Center for Social Innovation and Design Thinking, which Taylor launched with a $15 million gift to the university in November 2014. The center brings together Tulane faculty, students and researchers from a wide range of disciplines to reach practical solutions to many of the world’s most daunting challenges. A Tulane Law alumna and a member of the Board of Tulane, Taylor has served on countless boards and councils both in New Orleans, where she lives, and nationally. After Hurricane Katrina, while Tulane deepened its commitment to New Orleans, Taylor became a regular attendee at the Aspen Institute’s Big Ideas Festival. It was here that she recognized the potential for connecting social innovation and design thinking, and came up with her own “Big Idea” for Tulane.

“Phyllis has empowered Tulane to scale what we already have been doing with social innovation and social entrepreneurship, taking it to the next level,” said Schwartz. “She is a visionary with clear ideas for what she hopes the Center will accomplish, and she’s very engaged.”

In February 2015, Schwartz, Taylor and 23 other Tulane University affiliates visited Washington, D.C., for the Ashoka U Exchange conference, the pre-eminent conference for universities that are focused on social innovation in the United States. Tulane is one of Asho“My big idea? To approach issues such as water, energy, coastal restoration, health care, ka’s 30 Changemaker Campuses and was selected to host the 2016 Ashoka U Conference. crime, homelessness, education and everything else, by bringing together the Schools This honor is one of the many events at the Taylor Center during the next year. “The best is of Architecture, Business, Law, Medicine, Public Health and Tropical Medicine, Social yet to come.” Schwartz said. “And we have Phyllis Taylor to thank for that.” Work, Science and Engineering, the Primate Center, and let’s not forget, the School of Liberal Arts,” she said during her plenary speech at the 2015 Aspen Institute Festival. “And then engage the community that faces these issues daily; find out what doesn’t work, and then try to find out what will work.” Less than a year after Taylor announced her gift, the Taylor Center is a cornerstone of the Tulane experience. It is home to Tulane’s Social Innovation and Social Entrepreneurship Minor courses; the Social Innovation Symposium; and Design Thinking workshops taught by faculty, staff, and Taylor Fellows who are scholars and practitioners. Tulane’s Grand Challenges, a series of contests established by Taylor that awards cash prizes to the best ideas for addressing environmental degradation and other world problems, are also housed at the Taylor Center. So what is design thinking, exactly? Center Director Kenneth Schwartz, Favrot Professor and Dean and the Michael Sacks Chair in Civic Engagement and Social Entrepreneurship, started his explanation by declaring what it is not: “It’s not design in the same sense as doing architectural, graphic or industrial design,” he said. “Design thinking, often referred to as human-centered design, is the methodology of working collaboratively, creatively and empathetically to solve problems, including problems that are not physical; for example, it can be used to make a process work better.”

phyllis taylor

endowment support

Schwartz explained that design thinking challenges the traditional problem-solving model of management consulting and “top down” methods. Instead of bringing in an expert to study a problem and provide a recommendation report, design thinking brings stakeholders to the table, seeking their unique perspectives based on their engagement with the very issues under consideration. The people who are most affected by a given problem and invested in solving it come together to impact positive change.

taylor center in flower hall

Large endowments, typically $1 million or more, which are not invested in the Pooled Endowment due to specific donor restrictions, are invested separately. These funds are overseen by the Department of Treasury and Trust Investment Office in New Orleans. At fiscal year-end, the Separately Invested Endowment Funds totaled $137 million and are comprised of common stock, fixed income, private equity and venture capital, money market and donor-directed externally managed accounts.

Murphy Institute Celia Scott Weatherhead Samuel Stone CIPR Trust Aron Endowment Fund Deming Library Fund All Others Combined TOTAL SEPaRATELY INVESTED

market value $82.3 $19.1 $14.2 $7.3 $3.8 $10.1 $136.8

gift annuities and life income trusts Tulane University Life Income Trusts and Annuities totaled $21.4 million as of June 30, 2015. Most of these assets are managed by State Street Global Advisors (SSGA) and payments are made to the donor or other designated beneficiaries for a specified term or life of the beneficiaries. The remainder assets are typically contributed to Tulane’s Endowment. These funds are comprised of common stock, fixed income and real estate investment trusts. The asset allocation is determined based on age of beneficiaries, term of trust, payout rate and any special circumstances.

endowment returns

ideas by design: phyllis taylor

Jeremy Crigler, Chief Investment Officer Jeremy joined the Investment Management Office in January 2008. Jeremy is responsible for all aspects of managing the endowment and related assets. His 25+ years of investment experience include being Senior Investment Officer at Cornell University and Investment Director at Duke Management Company. He has a BSM in Finance from Tulane’s A. B. Freeman School of Business and an MBA from the Fuqua School of Business at Duke University. He is vice-chair of the Board of Trustees of Cardigan Mountain School and Chairman of the Investment Committee. Richard Chau, Managing Director Richard joined the Investment Management Office in September 2013. Prior to Tulane, he was a Vice President in Bessemer Trust’s Private Equity Funds Group in New York, where he helped manage a multi-billion dollar global private equity portfolio. Prior to Bessemer Trust, Richard spent over two years at The Andrew W. Mellon Foundation, focused on the private equity portfolio. His previous experience also includes investment banking at Houlihan Lokey and investment consulting at Cambridge Associates in Boston. Richard has a BA in Economics and Chinese from Williams College and an MBA from Columbia Business School.

international trade at the London School of Economics. Scott joined the investment office after completing an internship at Fifth Third Securities in fixed income trading and working in the Private Client Group at UBS for two years. Scott is a CFA and CAIA charterholder.

Paul Weaver, Director of Investment Accounting Paul joined the Investment Management Office in September 2008. From 2005 to 2008, Paul worked at OpHedge Investment Services as Director of Fund Accounting where he was responsible for managing the accounting group and for calculating NAV’s of large, complex hedge funds. Prior to OpHedge, Paul has over 20 years of experience working in various accounting related roles for both hedge funds (Paloma Partners, Parker Global Strategies) and large financial firms (Drexel Burnham Lambert, Goldman Sachs, UBS). Paul holds an MBA with a concentration in International Finance from Pace University.

Jake Kriegsfeld, Research Analyst Jake joined the Investment Management Office in June 2013 after completing an internship with the Endowment the previous summer. He graduated summa cum laude from Tulane’s A. B. Freeman School of Business in 2013 and as a member of the William Wallace Peery Society, which recognizes graduating honors seniors with cumulative GPAs in the top 15 of their class. Jake also earned a minor in Spanish, which he speaks fluently, and completed an abroad program in international business in Madrid, Spain. Jake has completed all three levels of the CFA Program.

Scott Gerdes, Associate Scott joined the Investment Management Office in June 2011 after completing his MBA as a Morton A. Aldrich fellow with concentrations in Finance, Energy Markets and International Business at Tulane’s A. B. Freeman School of Business. He also holds a BS in Economics and Financial Economics from Vanderbilt University and completed an abroad program in

Craig Friedman, Research Analyst Craig joined the Investment Management Office in July 2014 after completing an internship with Schafer Cullen Capital Management the previous summer. He graduated cum laude from Tulane’s A. B. Freeman School of Business in 2014 with a BSM in Finance. Craig is a CFA Level I Candidate.

Brad Bauguss, Research Analyst Brad joined the Investment Management Office in July 2015 after completing an internship with Intrepid Capital Management the previous summer. He graduated cum laude from Tulane’s A. B. Freeman School of Business in 2015 with a BSM in Finance. He also completed a major in economics from Tulane’s School of Liberal Arts. Brad is a CFA Level II Candidate. Diane LeBlanc, Department Administrator Diane joined the Investment Management Office in September 2008. Prior to joining the team, she worked for 10 years as an office manager for Blazzard, Grodd & Hasenauer, a law firm specializing in regulatory compliance for insurance companies and investment firms. Claudia Conte, Performance Analyst Claudia joined the Investment Management Office in March 2013. Prior to joining the team, Claudia worked for six years as a Financial Analyst at Informa Investment Solutions. She attended Western Connecticut State University in Danbury, CT, where she graduated with a BS in Business Management/Accounting.

s t a ff

Julia Mord, Director Julia joined the Investment Office in May 2014 and is responsible for the Marketable Alternatives portfolio. From 2006 to April 2014, Julia was an investment officer at AI International, a New York City-based family office, where she responsible for co-managing a multiasset class portfolio with a significant allocation to hedge funds. Prior to her experience at AI International, Julia worked at Jefferies & Company and Ernst & Young. Julia has a BA in Economics from the University of Chicago, an MBA from The Wharton School at the University of Pennsylvania, and is a CAIA charterholder.

investment office analyst and internship programs

Where Are They Now: MARK SINNI

As part of maintaining a strong connection to the University it serves, the Investment Management Office recruits analysts and interns solely from Tulane. Five Tulane graduates have completed the analyst program so far and the Office has had nine interns since 2009, two of which joined the Office as full-time analysts.

This year we sat down with Mark Sinni. Mark joined the Investment Management Office in May 2009 after completing his MBA at Tulane with dual concentrations in Finance and International Business. After three years as an analyst and one year as an associate with the Endowment, Mark now works as a Portfolio Manager for the YMCA Retirement Fund based in the financial district of New York City.

For the internship program, the investment team selects from among the top students from one of the University’s undergraduate or graduate colleges. The position is open to all majors including Finance, Economics, Mathematics or Statistics, but requires that the student possesses a strong awareness of and passion for the financial markets. Interns are able to immediately contribute to the investment efforts of the team. Past interns have researched and presented investment topics such as global consumer equities, inflation, timber, hedge fund replication strategies, Russian equities and private equity in India.

tulane: What was your favorite project that you worked on while at the Investment Management Office? Mark: My most challenging and rewarding project was researching the various opportunities present in the structured credit markets in 2011, specifically non-agency RMBS securities, which remained distressed following the real estate collapse of 2007–08. Tulane invested a fair amount of capital in the space, and this has performed exceptionally well, which is very rewarding to know. tulane: What was your favorite asset class that you worked on? Mark: Although not an actual asset class, I learned the most from covering the endowment’s hedge fund portfolios. Most investors understand equities fairly well, but there is so much more to the global investible universe. No two hedge fund managers are the same, and to have a complete understanding of the many strategies employed, one needs to understand equity, fixed income, currency and commodity markets globally. The skillsets I built working hard to learn these strategies at the Investment Office have allowed me to pursue the career I’ve desired since leaving the University. tulane: What was your most memorable manager meeting? Mark: One large bank holds a manager conference in Yankee Stadium each year. Following a long day of manager meetings we were able to take a tour of the locker room and dugout and take pictures with (only a few) of the Yankee’s championship trophies. As a lifelong Yankee fan it was a dream come true.

tulane: What is your favorite restaurant in New Orleans? Mark: No one can narrow it down to just one, but in a typical week in New Orleans I would try to hit Herbsaint, Delachaise and definitely Felipe’s Taqueria.

darien office

s t a ff

tulane: Having attended Tulane, what do you miss most about the University? Mark: Things can get fairly hectic in New York which is when I miss the slower pace of New Orleans the most. The food, music, and winter weather aren’t bad either.

Location, Location, Location As one of the first universities to locate their investment office away from campus—1,354 miles away in Darien, Connecticut - Tulane has been recognized for its innovative approach to endowment management, paving the way for several other schools to follow our path and locate off-campus. Our motivation to locate the office in the New York City region was to provide staff with the best possible access to investment managers, research firms and industry conferences that are frequently held within the New York and Boston corridor. The central location allowed the team to participate in over 700 meetings and conferences in fiscal year 2015 alone. Conveniently located right off of the Metro North rail line and I-95, the office’s location allows for a quick trip into Manhattan or other nearby financial centers including Greenwich, Stamford, Boston and Washington, D.C.

l o c at i o n

Both the analyst program and the internship program were created to attract the highest caliber talent from Tulane. The analyst program is a three-year rotational program through various asset classes including Public Equity, Private Capital, and Marketable Alternatives. Analysts gain specific knowledge of these markets by evaluating investments alongside senior members of the office and gain hands-on experience that is far beyond most post-undergraduate analyst positions in the finance industry.

Tulane University • Investment Management Office • 9 Old Kings Hwy, South • Darien, CT 06820 • (203) 716-8470