Alumni Bulletin - Winter 2009 - (Page 7)

ON CAMPUS asset classes, and also to have a more global feel to the investments. The key to the diversiﬁcation, particularly into alternatives, is that you have to be invested with the better managers. It makes a big difference because the key to the outperformance of alternatives is really driven by the skill of the manager, rather than by general market movements. The dispersion of returns in alternatives between the best managers and the average managers is much greater than in traditional asset classes. In addition, you have to overcome the higher fees that are involved with investing in alternatives. So part of our strategy is to be very proactive, going out and selling “the Lehigh story” to these superior managers, convincing them that Lehigh would be an attractive partner. So how has Lehigh’s endowment fared? advancement BAYER FAMILY REUNION Three generations of the Bayer family gathered in Linderman Library on the morning of Saturday, Oct. 11, to rededicate the ofﬁce of special collections and commemorate the life of the family’s matriarch, Rachel Bayer. Rachel was the wife of Curtis Bayer ’35; the mother of six Lehigh graduates, Daniel ’59, Peter ’60, Thomas ’63, Stephen ’72, Timothy ’72, and Curtis Jr. ’75; and a member of the Friends of Lehigh University Library. During Curtis’ and Rachel’s lifetimes, they supported Lehigh in many ways, including the 1985 naming of the Bayer Galleria and Bayer Family Special Collection Reading Room on Linderman Library’s third ﬂoor. During the library’s recent revitalization, a portion of the Bayer Family Room became the curator’s office. The Bayer Galleria and Family Room also provide space for exhibitions, study, and storage of a portion of the university’s 40,000-volume special collections. Continuing the family’s legacy of generosity, the residuum of numerous charitable gift annuities established during the lifetimes of Curtis and Rachel Bayer was added to the existing Bayer Family Endowment Fund for Preservation and Maintenance. A portion of the endowment earnings provided the means to renovate and rename the curator of special collections ofﬁce in 2007. Many of Rachel Bayer’s family, including grandchildren and great-grandchildren, attended the dedication, as did Lois Black, curator of special collections; Sue Cady, coordinator of the Friends of the Lehigh Libraries; and Ilhan Citak, special collections librarian, along with advancement colleagues Susan Vengrove and Lorraine Wiedorn. “It was wonderful to get together at the library with other family members for the dedication of a special place honoring my mom, Rachel Bayer. Mom and Dad spent countless weekends at Lehigh over the 60-plus years they were married and were truly devoted to Lehigh,” Stephen Bayer says. “Lehigh has been the glue which has helped keep the family together.” Three generations and 13 members of the Bayer family have attended Lehigh, with the fourth generation to enter the university in the fall.—Becky Straw Fiscal year to date, our benchmark is down about 23 percent, and we’re down just under 20 percent. The world equity index for that period was down almost 34 percent. While well ahead of our benchmark on a relative basis, our absolute returns are still disappointing. Unfortunately, over these last six months, there was no place to hide. All the markets were down on a global basis. Nevertheless, we were somewhat fortunate in the timing of implementing our new asset allocation strategy. Many markets were at alltime highs, and as we brought down allocations to various asset classes, we built up the cash balance. We did not immediately deploy that cash since we thought markets were too rich. The positive aspect of this is, we have a lot of liquidity in the fund. We are able to continue to meet the investment objectives of contributing to the operations of the university, while having capital available to make new investments at a time when prices are depressed and opportunities from ﬁnancial market dislocations will emerge. We now have opportunities to access high-quality alternative managers. This will help us build out a portfolio that should benefit the endowment for the longterm future. If there’s any silver lining in the crisis of the current market, that’s what it is. The reality of the economy and the ﬁnancial markets is not good. But there are always investment opportunities when there are dislocations in ﬁnancial markets. We have the liquidity to take advantage of those opportunities as we build out Lehigh’s endowment for the future. The Bayer family gathering included: (standing from left to right) Marlene, Andy, Mark ’84, Daniel ’59, Stephen ’72, Paula Thoden Bayer ’84, Daniel Jr. (“Chip”) ’83, (sitting left to right) Emily, Peter ’60, Chickie, Zane, Brendan, Jacquie, and Daniel III ’13. winter 2009 7 PHOTO BY THEO ANDERSON

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Lehigh Bulletin - Winter 2009 Contents From the President's Desk Mailbox On Campus Research Arts & Culture Sports Teaming Up to Tackle Global Challenges Positively 4th Street A Sweet Job From the Publisher's Desk Alumni News

Alumni Bulletin - Winter 2009

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