UHS - Approved Minutes

MINUTES OF THE MEETING
UNIVERSITY OF HOUSTON SYSTEM
BOARD OF REGENTS
May 25, 2006

Members Present:	Members Absent:
Leroy L. Hermes, Chair Mike Cemo, Vice Chair Dennis D. Golden, Secretary Calvin W. Stephens Welcome W. Wilson Jim P. Wise Raul A. Gonzalez Lynden B. Rose	Morgan Dunn O’Connor Robert B.Johnson

The University of Houston System Board of Regents convened in Room 220 E. Cullen Building at 4800 Calhoun, Houston, Texas on May 25, 2006. Noting the presence of a quorum, Chair Hermes called the meeting to order at 10:05 a.m.

Chair Hermes presented the proposed meeting dates for Board of Regents’ meetings during Fiscal Year 2007. Regent Gonzalez moved board approval of the Fiscal Year 2007 board calendar. Regent Cemo seconded the motion, which passed unanimously.

The board recessed for the Administration and Finance committee meeting at 10:07 a.m.

ADMINISTRATION AND FINANCE COMMITTEE

Chair Cemo turned the committee meeting over to Vice Chancellor John Rudley. Dr. Rudley introduced Raymond Bartlett as the UH System’s new Treasurer.

Dr. Rudley turned the meeting over to Bruce Myers and Craig White of Cambridge Associates. Myers and White reviewed the System’s asset allocation and endowment performance. They also led a discussion on opportunities in private equity/venture capital investments.

Presentations were made by the following Investment Managers:

Global Real Return Fund, by Mamak Shahbazi and Keith Lloyd of Colchester Global Investors, Ltd.

Diversified Inflation Hedge Fund, by Laurie Deaton and David Chang of Wellington Management

Associates Offshore Fund, Ltd, by Will Green of Federal Street Partners

HBK Fund, L.P., by John Cox of HBK Investments

HedgENERGY Partners, L.P., by Lee Moncreif, B. J. Willingham, and Sharam Honari of Moncreif Willingham Energy Advisors

After presentations from the firms listed above, the Committee discussed the feasibility of hiring some or all of the investment managers as investment managers of the System’s endowment and the appropriate amount to invest in each fund.

$4 Million in Colchester Global Investors’ Global Real Return Fund

$11 Million in Federal Street Partners’ Associates Offshore Fund

$19 Million in Wellington Management’s Diversified Inflation Hedge Fund

$11 Million in HBK Investments’ HBK Fund

$4 Million in Moncreif Willingham Energy Advisors’ HedgENERGY Partners Fund

HarbourVest Partners VIII:

$4 Million in the Venture Fund
$4 Million in the Buyout Fund
$2 Million in the Mezzanine and Distressed Fund

Regent Cemo made a motion for the Committee to recommend all of the investments listed above to the full board at its August meeting. Regent Golden seconded the motion, which passed unanimously.

The Administration and Finance Committee meeting was adjourned at 4:25 p.m.

Pursuant to Subchapter D of Chapter 551 of the Texas Government Code, which allows governing boards to meet in closed session, the Board of Regents went into Executive Session at 4:25 p.m. The Board reconvened the meeting at 5:05 p.m.

EXECUTIVE SESSION REPORT

Regent Hermes announced that the regents discussed personnel and property issues. No action was taken.

In absence of further business, the Board adjourned at 5:05 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, however, this does not constitute a waiver of any privileges contained therein.

Others Present:
John Rudley Ed Hugetz Janis Newman Hamilton Lee Laurie Deaton John Cox	Dona G. Hamilton Raymond Bartlett Bruce Myers Mamak Shahbazi David Chang Lee Moncreif	Michael Rierson Sharam Honari Craig White Keith Lloyd Will Green B. J. Willingham