Fri, Sep 4, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Endowment performance shows allocation is not destiny

Tuesday, November 26, 2013

Bailey McCann, Opalesque New York:

For hedge fund managers chasing institutional dollars, new figures out from Charles A. Skorina & Company show that big ticket allocations may not always ensure security. In a new special report, Skornia shows that allocation and execution typically contribute to relative performance on roughly a 50/50 basis. Further, actively managed portfolios are not always better managed portfolios. " If you don't have a great active manager handy, then a prudent allocation earning index returns may not be a bad thing," Skorina writes.

To illustrate how this works in practice, Skorina looks at the overall performance of the top 12 ivy league and alt-ivy endowment portfolios based on the most recent data, accounting for recent changes in the investment teams of those endowments. The figures below show that endowments returned around 11.6% for the year according to the NACUBO-Commonfund survey for FY2013.

Data in the report shows that of a portfolio mix at these endowments which include: equities; fixed income; private capital; real estate, and hedge funds, hedge funds represented a 20% allocation. For that 20%, endowments saw returns of just over 7%, underperforming smaller allocations in equities, real estate, and natural resources. Hedge funds have been underperforming the S&P500 for much of this year, and had mixed performance last year. Based on this break down, figures suggest tha......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Cliff Asness attracts $360 million as liquid alternative funds hold up[more]

    From Bloomberg.com: As U.S. stocks suffered their worst month in more than three years in August, Clifford Asness’s managed futures fund was able to profit. Investors are taking notice. The $9.12 billion AQR Managed Futures Strategy Fund pulled in an estimated $360 million in net subscriptions last

  2. Opalesque Exclusive: When the SEC calls, fund managers need to get out of their own way[more]

    Bailey McCann, Opalesque New York: New pressure is hitting alternative investment funds from all angles. So far this month both hedge fund and private equity players have seen enforcement actions, and subsequent fines over fees, disclosures, and misleading statements. Citi one of the biggest

  3. Performance - Einhorn and Loeb's hedge funds both decline 5% in August, Some target-date funds miss in the market turmoil[more]

    Einhorn and Loeb's hedge funds both decline 5% in August From Reuters.com: Hedge fund billionaires David Einhorn and Daniel Loeb saw their main funds lose roughly 5 percent in August during a dramatic market sell off, two people familiar with their returns said on Monday. Einhorn's

  4. Fortress hedge fund manager David Dredge says markets trouble on the way[more]

    From AFR.com: David Dredge of global hedge fund Fortress has built a career studying, predicting and protecting against the world's major financial crises. The recent convulsions in global sharemarkets are "just the beginning" of a painful adjustment as money drains from the emerging market economie

  5. North America - Puerto Rico agency plans talks with hedge fund creditors[more]

    From WSJ.com: Puerto Rico’s Government Development Bank is planning to begin confidential debt-restructuring talks with hedge funds that own its bonds as early as next week, said a person familiar with the matter. The parties are set to discuss a plan under which the investors would lend additional

 

banner