Texas Presbyterian Foundation
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Large Cap Equity Fund

Inception Date: December 1, 1983

TPF Large Cap Equity Fund is a broadly diversified portfolio of mostly U.S. and some international stocks that seeks to provide opportunities for long-term capital growth, while avoiding speculation and undue risk. The Fund’s goal over three to five year market cycles is to provide returns that exceed a market benchmark (the Russell 1000 Index) but with lower risk that the benchmark as measured by volatility of returns.

The Fund is comprised of two primary components: a Growth Equity Portfolio and a Value Equity Portfolio. In addition, as much as 25% of the Fund may be allocated to one or more managers employing indexing, hedge, absolute return or similar alternative strategies to the extent the Foundation’s Investment Committee believes such allocation may enhance returns, reduce benchmark tracking error and/or reduce volatility and risk.

Although most clients will prefer to benefit from the broad diversification of the blend of investment styles available through the Large Cap Equity Fund, the Growth Equity Portfolio and the Value Equity Portfolio may be accessed directly by those clients who wish to follow a different equity allocation policy.


Net Assets: $225.9 Million
As of December 31, 2018

Fund Management

Management of the Growth Equity Portfolio (approximately 40% of the Fund) is divided between two outside professional advisory firms with distinct approaches to large-cap growth equity investing: INTECH of Florida, using a mathematically based risk control process that uses natural stock price volatility and correlation characteristics to adjust the weighting of securities in an index portfolio to generate an excess return, and Sands Capital Management of Virginia, a somewhat traditional “bottom-up” stock picker using significant proprietary research to create a concentrated portfolio focused on the firm’s best ideas among quality large cap growth equity businesses.
The Value Equity Portfolio (another 40% of the Fund) is advised Eagle Capital Management of NewYork, employing a bottom up, research-driven approach to find undervalued growth companies, and about half the Portfolio is invested in LSV Asset Management of Chicago, employing a disciplined, quantitative, ‘contrarian’ approach.
Approximately 20% of the Large Cap Equity Fund employs a “sector-neutral” strategy, currently participating in an institutional index portfolio managed by Northern Trust of Chicago, Illinois.

Reports

For additional information, please contact your Relationship Manager.