CAKE Foundation Mandates $52 Million for 2006 Alternative Asset Allocation; Selecting Accomplished Money Managers Who Succeed with Top Quartile Performance.WILMINGTON, Del. -- The Charles & Agnes Kazarian Eternal Foundation ("CAKE") mandates $52 million for 2006 alternative asset allocation Asset Allocation The process of dividing a portfolio among major asset categories such as bonds, stocks or cash. The purpose of asset allocation is to reduce risk by diversifying the portfolio. . CAKE is selecting accomplished money managers who succeed with top quartile Quartile A statistical term describing a division of observations into four defined intervals based upon the values of the data and how they compare to the entire set of observations. Notes: Each quartile contains 25% of the total observations. performance. United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Europe, and Asia hedge fund hedge fund, in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" and private equity manager selections are planned for the third and fourth quarters of 2006. CAKE's 2006 $52 million mandate is 18% of the Foundation's $291 million projected five-year alternative asset mandate. -Alignment of Interests- "Our most important selection criterion is alignment of interests," commented Christopher Magarian, CAKE's Finance Group Director. "Aligned co-investment terms cultivate superior performance." CAKE benchmarks its managers according to the following criteria and weighting: alignment of interests (50%), performance track record (40%), and investment strategy (10%). -Performance Track Record- Japonica japonica (jəpŏn`əkə): see quince; camellia. Partners, the entrepreneurial co-investment firm that makes concentrated investments in underperforming global large caps, has benevolently assented to support CAKE, pro bono publico Pro bono publico (often shortened to pro bono) is a phrase derived from Latin meaning "for the public good." The term is sometimes used to describe professional work undertaken voluntarily and without payment, as a public service. , in vetting managers. "When comparing manager performance track records, CAKE will use the GIPS GIPS - /gips/ or /jips/ [Analogy with MIPS] Giga-Instructions per Second (or possibly "Gillions of Instructions per Second"; see gillion). In 1991, this was used of only a handful of highly parallel machines and one sequential processor built with Josephson devices. (R) framework to assess the bona fides of accomplished money managers," explained Japonica Partners Principal Chet Hollister. "And, the Foundation expects significant allocations to entrepreneurial managers who can create financial alchemy from CAKE's own value-added and global network as a strategic co-investor." CAKE has extensively researched and analyzed the past 20 years performance of top quartile alternative asset allocation benchmarks and their high value-adding best practices. CAKE's proprietary selection process includes the best practices of two benchmarks, Yale Investments Office and Harvard Management Company Harvard Management Company (HMC) is an investment arm of the Harvard University's Endowment Fund. HMC currently manages the $34.9 billion Harvard University endowment [1], the largest endowment in higher education [2] . About the Charles & Agnes Kazarian Eternal Foundation: The Charles & Agnes Kazarian Eternal Foundation is a private operating foundation created in 1993 by Paul B. Kazarian, Founder and Managing Director of Japonica Partners. Its mission is guided by the capitalist-philanthropist principles contained in New Philanthropy Benchmarking: Wisdom for the Passionate. The Foundation has 87 professionals world-wide with 27 FTEs. About Japonica Partners: Japonica Partners is an entrepreneurial co-investment firm that makes concentrated investments in underperforming global large caps. Japonica's special core competency is changing corporate cultures to cultivate entrepreneurial returns for its co-investors who succeed with top quartile performance. |
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