Case study: a foundation

A hospital foundation wanted to know how it could generate enough money for grants each year without incurring too much market risk. The foundation had a requirement for return and, as a result, had to have exposure to equities.

We helped them develop a spending policy designed to avoid the erosion of their portfolio’s principal and introduced alternative investment strategies to mediate the risk profile, without downplaying the return expectation.

Their current investment plan had no alternative investments and only limited exposure to international strategies. We educated their committee members on why they needed to include new assets classes. Due to our size and established relationships with private equity firms and fund managers, we were able to help our client gain access to investment opportunities they normally could not find on their own.

Now they have an allocation toward alternative investments along with two large funds of funds. We also introduced liquid alternatives to help them meet their liquidity needs.

Over the many years they have been our client, their growth has been consistent. Their fund, which had $2.6 million in 1988, is today near $250 million. During this same time, they also have been able to distribute $50 million in grants.

By building a program, staying engaged with our clients, educating them about new strategies and philosophies, then putting plans into practice, we are proud to have played a role in helping them grow.

This material is not intended for use as investment advice. It does not guarantee the attainment of your goals. Individual results will vary. There is no assurance that any investment strategy will be successful. Investing involves risk and investors may incur a profit or a loss. Past performance is not indicative of future results.