Investment Managers
Berkshire Taconic strives to achieve excellence in its investments by researching and employing top specialists in each asset class. As of December 31, 2007, the $80 million invested in our Managed Pool is allocated to 51% Equities; 5% Fixed Income; 31% Alternatives; 6% Real Assets; and 7% Cash. The equity portion of the portfolio is modeled after the Russell 3000 with an allocation to small, mid, and large cap stocks.Ashmore Investment Management Limited
London, U.K.
Ashmore was established in 1992 and is a fund and segregated account manager with a focus on the emerging markets fixed income asset class and currencies. Total assets under management exceed $26 billion. In 2004, the Foundation invested in the Emerging Markets Liquid Investment Portfolio (EMLIP).
The Commonfund
Wilton, CT
This investment organization, founded in 1971, is an experienced partner in investment management for nonprofit organizations. The Commonfund is the largest investment manger for nonprofit endowments in the U.S. with over $37 billion under management. Berkshire Taconic began its investment in 2001 by participating in the Commonfund’s Alternative Investment “Capital Partners” which is a fund of funds with a total subscription of $250 million. This investment provides access to Venture Capital, Private Equity and International Private Capital opportunities. In 2007, Berkshire Taconic made an additional commitment to Commonfund’s Private Equity Partners Fund, a fund of funds with a total subscription of $83.9 million.
Cramer Rosenthal McGlynn, LLC (CRM)
New York, NY
CRM is a registered investment advisory company founded in 1973 with over $10 billion under management. The firm’s experience of identifying undervalued companies and patiently waiting for market recognition has provided its clients with substantial long-term returns. Berkshire Taconic participates in the “Mid Cap Value Fund” established in 1998 with assets of $1.4 billion. The Foundation invested with CRM in 2003.
Dodge & Cox
San Francisco, CA
Dodge & Cox was founded in 1930 and manages over $142 billion in mutual fund and private accounts. The Foundation invested in the International Stock Fund in March, 2005. The fund invests in a diversified portfolio of equity securities issued by non-U.S. companies from at least three different foreign countries, including emerging markets. The fund invests primarily in medium-to-large well established companies based on standards of the applicable market.
Elliott International Limited
Grand Cayman, Cayman Islands
Elliott International is a limited partnership created in 1994. The majority of the portfolio is invested in distressed securities and hedge/arbitrage positions. Elliott currently has assets of $7 billion. The Foundation subscribed to Elliot in 2001.
Farallon Capital Management LLC
San Francisco, CA
Farallon was founded in 1986 and manages over $26 billion. Berkshire Taconic committed $5 million to Farallon Capital Institutional Partners, L. P. in 2007. The fund seeks to preserve capital while producing above market returns without the volatility normally associated with the equity markets. Investments are event driven and associated with extraordinary corporate actions with predictable outcomes. Areas of focus include: risk arbitrage, distressed credit investments, real estate related investments, distressed convertibles, private equity and special situations. Farallon Capital Institutional Partners, L. P. has assets of $6.3 billion.
Julius Baer Investment Management
New York, NY
Baer has $68 billion in assets under management. The international portfolio is 75% developed countries (68% EAFE ex-Japan, 5.6% Japan, 2.7% US and Canada) and 25% emerging markets. It is diversified core portfolio emphasizing value themes identified through rigorous analysis of countries, sectors and companies.
Kinderhook Industries
New York, NY
Berkshire Taconic committed in February 2007 to Kinderhook Capital Fund II, L.P. Fund II, which makes equity and equity-like investments in companies within a $10 - $50 million valuation range and seeks acquisitions of orphaned non-core divisions of corporate parents, management buyouts of entrepreneurial-owned businesses where the founder is no longer active and acquisitions of platforms where the infusion of capital and management can accelerate growth rates.
Loomis, Sayles & Company
Boston, MA
Loomis has assets of $115 billion under management. The company uses a value-oriented total return approach to fixed income and seeks to identify securities that are increasing in credit quality and are non-market issues. The manager utilizes interest rate anticipation as an alpha generating strategy. Berkshire Taconic hired Loomis Sayles in January 2008.
Pacific Investment Management Co.
Newport Beach, CA
PIMCO, founded in 1971, is one of the world’s largest active bond managers with over $667 billion in assets under active management. Berkshire Taconic invested its Income Pool in PIMCO’s Total Return Fund, a broad market bond fund, in 2002 and our Managed Pool in 2003. The Total Return Fund has assets over $100 billion.
Select Equities Group, Inc.
New York, NY
Select Equity is a registered investment advisory company that was started in 1990 on the premise that rigorous fundamental research will generate superior investment returns. The firm focuses on the small cap sector. They presently have approximately $6 billion in assets under management. The Foundation placed a portion of its assets with Select Equity in 1999.
Sheffield Asset Management, LLC.
Chicago, IL
Sheffield Asset Management, LLC was formed in February 2003 with families from J&B Realty, owners of Broger Capital Management Fund of Funds. Current assets under management are $511 million in 3 funds. At the end of 2007, the portfolio was 86% long, 37% short and 49% net. They seek long investments with material change that cause a valuation change, uncrowded investments, and those with a margin of safety (17% to 18% invested by principals). Industries for shorts include cyclicals, boom/bust, and dinosaurs. The foundation invested in Sheffield in December 2005.
Stralem & Company
New York, NY
Stralem & Company, Inc is a privately owned, independent asset management firm founded in 1966 and has $2.1 billion under management. Stralem’s flagship product is its US Large-Cap Equity Strategy. Stralem believes there are four distinct phases to a market cycle. By correctly identifying a particular phase and appropriately structuring portfolios, Stralem has successfully navigated changing market environments. Strong fundamental research, coupled with consistent use of a proprietary Relative Growth Valuation Model, provides the framework for stock selection and risk management at Stralem. The investment approach is centralized, disciplined and dynamic and has delivered strong performance across varied markets. Berkshire Taconic invested with Stralem in April 2008.
Steadfast Financial, LLC
New York, NY
Steadfast Financial manages long-short equity hedge funds and has assets of $350 million. The company employs 10 people and was established in 1997. Steadfast seeks to generate attractive rates of return over a long period of time by investing primarily in publicly traded securities, both long and short, and on occasion secured debt, unsecured debt, or preferred stock. A disciplined approach based on intensive research, a focus on the direction of underlying company fundamentals, and portfolio diversification are the key drivers they use to reach the goal of providing attractive returns on capital without undue risk to principal. Berkshire Taconic invested with Steadfast in 2005.
Thornburg Investment Management
Santa Fe, NM
Thornburg, located in Santa Fe, New Mexico has $44 billion in assets under management. The international portfolio consists of 80% developed countries (55% EAFE ex-Japan, 9.2% Japan, 16.7% US and Canada) and 20% emerging markets. The investment discipline is bottom-up, conservative and fundamental. They are looking to uncover promising companies with sound business fundamentals at a time when their intrinsic value is not fully recognized (out of favor). Berkshire Taconic hired Thornburg in December 2007.
Walden Asset Management
Boston, MA
Walden Asset Management (assets of $1.7 billion) is a division of Boston Trust & Investment Management, and has been a leader in socially responsible investing since 1975. The Walden Social Balanced Fund has assets of $34.5 million and is allocated generally 60% stock and 40% bonds. The objective is to seek long-term capital growth and income through an actively managed portfolio of stocks, bonds and money market instruments.
Wellington Management Company, LLP
Boston, MA
Wellington Management is a Boston-based global company, started in 1928 as the first balanced fund in the country. It has long been diversified, and started dealing in commodities in 2003. Berkshire Taconic invested in September 2007 in its Diversified Inflation Hedge (DIH) fund, which provides exposure to several asset classes (real assets, commodities, and inflation-linked bonds), and is designed to provide protection against inflationary pressures.