Sun, May 29, 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. Americas - Australian banks sending U.S. hedge funds broke, Ryan Puerto Rico ‘rescue’ bill could be windfall for hedge funds[more]

    Australian banks sending U.S. hedge funds broke From SMH.com.au: US hedge funds are not having the best of years. Profits are hard to find, they're underperforming and the punters are losing patience, withdrawing US$15 billion ($20.8 billion) in the March quarter. They're expected to wit

  2. Investing - Billionaire Wilbur Ross likes the look of Chinese bad loans, Hedge funds are still relevant in a diversified portfolio: 4 fundamental criteria for superior manager selection[more]

    Billionaire Wilbur Ross likes the look of Chinese bad loans From Bloomberg.com: U.S. billionaire Wilbur Ross said he’s considering investing in nonperforming loans in China, as Moody’s Investors Service said that the nation has the tools to prevent a financial crisis in the near term. I’

  3. Investing - Blackstone gives pricey Canadian energy and property thumbs down, One of the most concentrated hedge fund bets is getting crushed, Facebook is hedge funds' new tech darling,[more]

    Blackstone gives pricey Canadian energy and property thumbs down From Bloomberg.com: Canada’s energy assets are uneconomic and real-estate markets overvalued, making them less attractive for investment than in the U.S. and elsewhere, according to Tony James, president of Blackstone Group

  4. Study - Only 30% of institutional hedge fund portfolios beat the benchmark[more]

    Bailey McCann, Opalesque New York: A new study from CEM Benchmarking, an independent provider of cost and performance analysis for pension funds, shows that only 30 percent of institutional investors hedge fund portfolios beat the benchmark after fees. The study provides in depth analysis of real

  5. Opalesque Exclusive: $1bn hedge fund club grows to 668 managers, continues to dominate (Part One)[more]

    Komfie Manalo, Opalesque Asia: Despite an underwhelming 2015 and a slow start to 2016 in terms of performance, one group of managers that continues to dominate the assets of the hedge fund industry is the so called $1bn club – hedge fund managers with at least $1bn in assets under management (AU