August 23, 2006
UNIVERSITY OF HOUSTON SYSTEM
BOARD OF REGENTS
ADMINISTRATION AND FINANCE COMMITTEE
| Members Present: | Members Absent: |
|
Michael J. Cemo, Chair
Leroy L. Hermes Morgan Dunn O’Connor Lynden B. Rose Welcome W. Wilson, Sr. Jim P. Wise |
Dennis D. Golden
Raul A. Gonzalez Robert B. Johnson Calvin W. Stephens |
The Administration and Finance Committee of the University of Houston System Board of Regents convened in Room 220 E. Cullen, University of Houston, on Wednesday, August 23, 2006. Noting the presence of a quorum, Chairman Cemo called the meeting to order at 1:25 p.m.
Chairman Cemo discussed the effort Cambridge Associates has made over the past few months regarding:
- Improving on the style-basis by adding large cap growth managers
- Finding qualified minority managers
- Building U.S. Equity position
Bruce Myers of Cambridge Associates introduced Hamilton Lee, who was named as the replacement for Craig White. Mr. Myers asked Mr. Lee to give a summary of the endowment performance. Mr. Lee also gave an overview of the following material that was distributed to the Board of Regents for information:
- Asset Allocation
- Current U.S. Equity Markets
- Large Cap Growth Managers
Regent Rose asked when Cambridge Associates would be reviewing our allocation to Fayez Sarofim again. Mr. Myers stated that the university had drawn down their exposure with Fayez Sarofim from $175 million to $14 million and he recommended we maintain that level of allocation at this time.
Mr. Myers recommended that the Administration and Finance Committee interview two new large cap growth managers at the next scheduled committee meeting. They are as follows:
- Smith Asset Management
- Wellington Management Company
When interviewing Wellington, the Committee will consider one of two products. The first product is U.S. Research Equity and the second product is Global Growth.
Mr. Myers also recommended that the Committee interview Absolute Plus Management, LLC, a minority–owned inflation hedging manager.
It was also mentioned that the $10 million in private equity funds approved for investment with HarbourVest Fund VIII will be coming to market soon. Mr. Myers reviewed a list of venture capital/private equity funds that will be coming to market in the next six to twenty–four months. He stated that the Committee should continue to review upcoming venture capital/private equity opportunities for possible commitment as it will take some time to reach the endowment fund’s targeted allocation for this asset class.
In absence of further business, the committee adjourned at 2:30 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 M. Rudley Dona G. Hamilton Jim McShan Raymond Bartlett Joe Kotarba Bruce Myers Hamilton Lee Janis Newman Justin Knapp Gerry Mathisen |
