Investment Philosophy

Investment Philosophy

Distinctive Investment Strategy

Through an innovative model, Spider Management provides a select group of endowments and foundations the ability to invest alongside the University of Richmond’s $3.1 billion endowment, thereby increasing the collective scale for all organizations to $5.8 billion. Spider’s size and structure allow all partners to invest like a large endowment, with the resources and access to investments typically unavailable to smaller organizations. Historically, larger institutions with diversified portfolios and access to top managers in alternative asset classes have outperformed smaller institutions.

Our investment strategy demands discipline, experience, appropriate scale, and deep networks. Put more simply, we invest in things that most others cannot. The unique benefits of the Spider approach include:

  • Proven track record of delivering top-tier investment performance*
  • Less volatility than a 70%/30% stock/bond blend approach*
  • Immediate investment in a mature, diversified portfolio
  • Access to many investments otherwise closed to new capital or that preclude smaller institutions
  • Flexibility to meet spending needs

Endowment & Foundation Focused

The objectives of endowments and foundations differ from other types of investors.

For that reason, Spider’s sole focus is on investing for endowments and foundations. Our approach is designed to provide governing boards more time to consider strategic matters and longer-term financial objectives. 

Prudent financial stewardship enabled the University of Richmond to take a $50 million gift in the late 1960s and turn it into a healthy endowment of more than $3 billion today.*

Students walk along a brick walkway surrounded by trees in the fall.

Spider’s investment expertise evolved from the University’s long history, and today it is shared with other non-profits. At our core, we understand that future generations rely on these long-term assets.

From gaining a deep understanding of our partners’ specific needs to seeking the best investments in the world, Spider provides a select group of endowments and foundations with the scale and resources to invest like large institutions.

Seeking to preserve principal and build long-term capital, Spider Management uses a strategic mix of asset classes and strives to produce the highest expected investment return within a prudent risk framework. One of Spider’s fundamental investment beliefs is to maintain a bias toward equity investments. Building a portfolio with an equity bias, including a significant allocation to alternative investments, offers opportunities to enhance returns and reduce volatility. Spider further aims to add value through portfolio construction within asset classes and partnering with exceptional managers.

Core Investment Tenets

Equity Bias

The primary growth driver of the portfolio, equities have historically produced higher long-term returns.

Test Alt
Diversification

Building a diverse portfolio across asset classes, managers, and geographies is a primary return enhancement and risk assessment tool.

Long Time Horizon

Our ability to be a long-term investor enables Spider to take advantage of less efficient markets and avoid distractions from short-term market moves.

Distinguishing Features

Equal Access Model

Partners share exposure to all investments

Test Alt
Alternatives Expertise

Particularly valuable in a lower return environment for public markets

University Connection

Aligned interests and stable anchor investor

This material is neither an offer to sell nor a solicitation of an offer to buy interests in any investment fund managed by Spider Management Company, LLC (“Spider Management”) or its affiliates. Any such offering can be made only in accordance with the terms of the private placement memorandum and other governing documents. This is for informational purposes only. More information about Spider Management, its investment strategies, objectives and expenses can be found in Form ADV Part 2, which is available upon request.

There can be no assurance that the investment objectives of any account or fund managed by Spider Management will be achieved or that its historical performance is indicative of the performance it will achieve in the future. Spider Management does not warrant the accuracy, adequacy, completeness, timeliness or availability of any information provided by non-Spider Management sources. All market outlooks, themes, strategies, allocations and holdings discussed herein are subject to change.

Information shown is as of 6/30/2023 unless otherwise noted. Historical performance has been audited through 6/30/2023. Past performance is not indicative of future results.

*References to top-tier performance are based on Spider Management’s top quartile annualized net performance over the 10 year time period ending 6/30/2023 according to Investment Metrics Endowments & Foundations Index. Spider Management's net return is the actual return of the entire Spider Management investment portfolio net of partnership expenses, management fees, and performance allocation for the investment fund limited partner class taken as a whole. Returns reflect the equalized return per the Rate of Return Agreement between the investment fund and the University of Richmond's endowment managed by Spider Management. Information regarding the Rate of Return Agreement is in the investment fund documents. An individual limited partner's return may vary based on the timing of capital transactions and different management fee and performance allocation levels per the terms of the governing documents. Investment Metrics data is based on net returns for the top quartile performers of all endowment and foundation accounts (over 1,000 total) that participate in Investment Metrics Plan Universe. References to volatility are based on standard deviation, which is calculated using quarterly net returns for Spider Management and 70% MSCI AC World/30% Bloomberg US Bond Aggregate for the period from 2/1/2008 (inception date of the investment fund) through 6/30/2023. Index information is provided for comparative purposes only. The volatility and performance of these indices could be materially different from that of Spider Management. The index information is included to show the general trends in certain markets in the periods indicated and is not intended to imply that the portfolio of any fund managed by Spider Management was similar to the indices in composition or element of risk. A variety of factors may cause an index to be an inaccurate benchmark for a particular portfolio and an index does not necessarily reflect the actual investment strategy of any portfolio. The indices are unmanaged, not investable, have no expenses and reflect reinvestment of dividends and distributions. Information about each referenced index, including regarding component selection and weighting methodologies, is available from its respective owner. Bloomberg US Aggregate Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market. MSCI AC World Index (MSCI AC World) is a market capitalization weighted index designed to provide a broad measure of equity market performance throughout the world, including both developed and emerging markets.  Current value of University of Richmond's endowment is inclusive of gifts, spending, and other historical cash flows and it should not be implied that the growth in the endowment is a result of the investment performance solely.