PelicanStateUniversity

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PelicanStateUniversity
2007 Endowment 2008

• Fund Managers
• Anne Lees, Andrew Ruhs, Abe Skellenger (Fired),
  Jet Theriac

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Agenda

• Initial theories
• Portfolio Weights
• PerformancePSU Other Teams
• Abe Skellenger
• PerformanceBear Stearns
• Problems
• Questions

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Initial Theories

• Bond Market Strategy
• Conservative
• Weight AGG 30
• Equity Market Strategy
• Underweight domestic equities
• Overweight international developed and emerging
  markets

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Initial Theoriescontinued

• Fund Policy Investment Management
• We are TEV focused, not alpha focused
• No tactical positions
• By taking strategic positions only, we will be
  able to focus our analysis on macro events and
  views as opposed to spread our time and efforts
  across multiple sectors and subsectors
• Drawback Must take relatively large bets on
  asset classes in order to avoid being closet
  indexers

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Initial Asset Allocation
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Quick Overview

• Target TEV 3.12
• TEV Bounded between 2.652 3.588
• Summary of Bonuses
• January 25 million! (Appraisal ratio gt 0.75)
• Our Holdings
• 500,000,000 gt 479,732,484

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Monthly Performance and TEV
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Summary statistics for all seven groups and the
benchmark!
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Our Beginning Performance

• Important Observations
• Clearly beating benchmark
• Not losing money
• Abe begins to takes on greater decision
• making role beginning in early November

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Abe Skellenger A History

• Born Aleksandr Vanechka Ovchinnikov Grigorovich
  1947 in a Russian Laboratorycryogenically frozen
  at birth.
• After the end of the cold war, adopted by a
  family in Polk County Florida.
• Excelled in math, foreign languages, football,
  and espionage in high school.
• Attended West Point
• Single handedly defeated 3 platoons of Iraqi
  soldiers in operation Iraqi Freedom

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However

• Important observations
• PSUs portfolio begins hemorrhaging cash around
  early November
• Abe is fired in mid April and begins working for
  Bear Stearns
• PSUs portfolio begins to rebound immediately
  afterward

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Post PSU

• Important observations
• Bear Stearns closed at 70.08 on Friday, March
  7, 2008.
• Abe began working on Monday, March 10,2008
• Bear Stearns closed at 4.81 on Monday, March
  17, 2008.
• Coincidencehardly
• Whats next?...hard to say

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• Questions?