Wed, Jul 27, 2016
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. Opalesque Exclusive: California-based manager launches long/short equity hedge fund with unique algorithm[more]

    Benedicte Gravrand, Opalesque London for New Managers: SJL Capital LLC, an investment advisory firm based in California, has launched its maiden fund, the SJL MarketDNA Hedge Fund LP. The fund, which began trading

  2. Manny Roman to move from Man to Pimco[more]

    Benedicte Gravrand, Opalesque London: Emmanuel (Manny) Roman, an investment world veteran, has been hired by PIMCO, the large US bond fund house, as chief executive officer. PIMCO's current CEO Douglas Hodge will assume a new role as managing director and senior advisor when Roman joins P

  3. Opalesque Exclusive: ArbitrOption outperforms benchmarks, up 7.18% in H1[more]

    Komfie Manalo, Opalesque Asia: Independent registered advisor ArbitrOption breezed through the tumultuous Brexit referendum and outperformed its benchmarks. ArbitrOption was up 7.18% in the first half of 2016 compared to the S&P 500 which gain

  4. Europe - European hedge funds shrink and shutter as turmoil hurts returns, Investors go bargain-hunting for U.K. property after Brexit vote, Brexit: Guidance for fund directors - what to know and what to ask[more]

    European hedge funds shrink and shutter as turmoil hurts returns From Bloomberg.com: Europe’s hedge-fund industry contracted for a sixth straight quarter as the U.K.’s decision to leave the European Union and concerns that China’s growth is slowing caused losses and forced some money man

  5. Platinum Partners starts liquidation of hedge funds following municipal union kickback scandal[more]

    Komfie Manalo, Opalesque Asia: Platinum Partners, the hedge fund in the middle of a New York City municipal union kickback investigation, is reported to be liquidating two of its funds, the New