Keep pulling the thread on Ed Grefenstette.
The Dietrich Foundation's investment thesis, established by founder Bill Dietrich, is that the greatest opportunity for a perpetual pool of capital is to be as illiquid as possible.
The Dietrich Foundation is structured without an investment committee, delegating investment authority directly to the CIO and CEO.
The Dietrich Foundation has not held any direct exposure to the S&P 500 or any other U.S. stock index since 1997.
According to all reported surveys, the Dietrich Foundation's investment returns rank number one among its peers for the trailing 10, 15, and 20-year periods.
The Dietrich Foundation's performance goal is to outperform a broad global equity index by 200 to 300 basis points, net of all fees, over long periods.
The Dietrich Foundation's portfolio is currently 90% illiquid, which is above its target allocation of 80-85%.
Over the last 10 years, the Dietrich Foundation's portfolio has generated $1.4 billion in distributions on $1 billion of capital calls, resulting in a net positive cash flow of $400 million.
The Dietrich Foundation is structured as a 509A supporting organization, which allows it to have an annual payout of 3% of its NAV, rather than the 5% required for private foundations.
The Dietrich Foundation's 90% illiquid portfolio is allocated with approximately 50-55% to venture capital and the remainder split evenly between growth equity and buyout funds.
The Dietrich Foundation's portfolio exposure to China peaked at 38% in late 2020 and has since declined to approximately 19-20%.
The Dietrich Foundation's China portfolio generated $160 million in net distributions (distributions over capital calls) over the last decade.
The Dietrich Foundation has significantly slowed its investment pace in China due to increased political and policy uncertainty from the Xi administration, adopting a "wait and see" approach.