FROM: Don Pierce, Chief Investment Officer
SUBJECT: Informational: Wasatch Global Investors Update
RECOMMENDATION:
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Wasatch Global Investors Update.
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BACKGROUND:
Wasatch was founded in 1975 and has approximately $22 billion of assets under management. Based in Salt Lake City, the firm has approximately 100 employees and is 100% employee-owned, with broad ownership across ~80 equity owners (all current employees). The firm’s overarching philosophy is to focus on high-quality companies globally with long-term earnings growth that are led by exceptional management teams.
SBCERA hired Wasatch in 2022 at the conclusion of an emerging markets equity RFP, with an initial allocation of $100mm to the Emerging Markets Select strategy; additional contributions of $150mm were made in 2024. Today, the account stands at ~$340mm, representing an annualized return of ~11.7% since inception. Returns, while positive and above our actuarial rate of return, have lagged the MSCI EM benchmark due to a mix of positioning and idiosyncratic position-level decisions.
Staff remain positive on the fundamental approach and strategy employed by Wasatch but are mindful of the relative underperformance; the allocation will continue to be monitored carefully.
BUDGET IMPACT:
None.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Prudent Fiscal Management
STAFF CONTACT:
Thomas Kim
ATTACHMENTS:
Exhibit A: Wasatch Global Investors Presentation