Tue, Oct 25, 2016
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. M&A - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From Thisismoney.co.uk: The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From CNBC.com: Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Marketwatch.com: Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. David Einhorn speaks on passive investing, Mylan, his cheapest stock, the Fed[more]

    From Forbes.com: Greenlight Capital hedge fund manager David Einhorn (Trades, Portfolio) joined nine other famed investors on Tuesday to talk about stocks at the annual Great Investors’ Best Ideas Investment Symposium in Dallas. Presenters at the annual conference typically pitch one or severa