UHS - Meeting Minutes

MINUTES OF THE SPECIAL CALLED MEETING
UNIVERSITY OF HOUSTON SYSTEM
BOARD OF REGENTS
ADMINISTRATION AND FINANCE COMMITTEE

January 31, 2005

Members Present:	Members Absent:
Leroy L. Hermes, Chair Michael J. Cemo, Vice Chair Morrie K. Abramson Dennis D. Golden Morgan Dunn O’Connor Lynden B. Rose Calvin W. Stephens	Raul A. Gonzalez Thad “Bo” Smith

The Administration and Finance Committee of the University of Houston System Board of Regents convened in Room 220 E. Cullen, University of Houston, on Monday, January 31, 2005. Noting the presence of a quorum, Chairman Hermes called the meeting to order at 1:35 p.m.

Representatives of the Cougar Investment Fund, L.L.C. began the meeting with a presentation on the student investment fund at the C. T. Bauer College of Business.

Bruce Myers of Cambridge Associates, who attended the meeting by phone, provided a performance overview of the UH System’s Endowed Investments including a review of recent fund manager performance.

Theresa Mozzocci and Doug Bratton made a presentation on Crestline Investors, Inc. Susan Stannard reviewed Seneca Capital Management’s recent performance for the University’s endowment fund.

The Committee will recommend to the Board at its February meeting, appointments of Crestline Partners, L.P. and the Cougar Investment Fund, L.L.C. as investment fund managers for the endowment. Crestline will manage $10 million and the Cougar Investment Fund will manage $500,000. Regents Cemo and Abramson abstained from voting on the Cougar Investment Fund investment as they are directors of this fund.

The Committee asked Cambridge to investigate the possibility of the endowment making an investment in China through one of its existing international equity managers, Bleichroeder or William Blair (Blair has more emerging market exposure). Cambridge will determine the country weighting in both the Bleichroeder and William Blair funds. Cambridge will make a recommendation by email to the Committee within the next 10 days regarding how to increase the endowment fund’s exposure to international equities. Cambridge will also email to the Committee an overview of Dodge & Cox in light of the large increase in their assets under management. At the next meeting, Cambridge will update the Committee on the change in top management at Smith Graham and will recommend a list of large cap growth managers to replace Seneca if the Committee feels it necessary to terminate Seneca as an investment manager.

The draft Manager Guidelines, “Statement of Investment Objectives and Policies” were approved by the Committee.

Regent Cemo requested that staff prepare a monthly report of the endowment fund’s asset allocation and returns instead of preparing it only quarterly.

In absence of further business, the Committee adjourned at 4:30 p.m.

All documentation submitted to the Board in support of the foregoing action items, including but not limited to “Passed” agenda items and supporting documentation presented to the Board, is incorporated herein and made a part of these minutes for all purposes.

Others Present:
John Rudley Jerald Strickland Jim McShan Paula Kelleher Raymond Bartlett Janis Newman Allen Warner Arthur Warga	Bruce Myers (by phone) Theresa Mozzocci Doug Bratton Susan Stannard Chris McMeans Jeff Jewell Diane Hauk Ron Singer Praveen Kumar Tom George