Fri, Feb 12, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Foundations and Endowments move into global equity and long duration fixed income

Friday, May 23, 2014

Bailey McCann, Opalesque New York:

Foundations and Endowments are rotating into global equity and longer duration fixed income in response to current market conditions and the expectation that the low yield environment will persist, according to the latest data from eVestment. Investor Trends Report: Foundations & Endowments, looks at allocation decisions and market exposures among foundations and endowments (F&E) around the world. The report looks at the allocation decisions over the twelve-month span ending Q1 2014.

Data shows that within US markets, F&E largest allocations are to Large Cap Value, Core Fixed Income, Large Cap Growth, Interim Duration FI and Core Plus FI. Outside the US, F&E have allocated heavily to Emerging Markets and Global All Cap Equity universes.

From a regional perspective, eVestment sees a slightly reduced exposure to North America, no meaningful change to Europe, but a noticeable increase to emerging markets beginning in 2013. Additionally, while sovereign exposure has remained relatively stable, there is a noticeable shift away from US sovereign debt to non-US developed market sovereigns.

To mitigate the risks of a US equity market decline, large allocations have gone to international markets, but are doing so through passive strategies. Additionally, recent large inflows into long/short and event-driven hedge funds likely include allocations from F&E. This would further reduce their directional risks and create more flexible regi......................

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. Credit Suisse cherry picks hedge fund ideas[more]

    From FT.com: Credit Suisse Asset Management plans to cherry pick profitable concepts from hedge funds with the launch in Europe of a “best ideas” strategy. The investment arm of the Swiss bank said the strategy will separate it from other funds blighted by “overcrowding problems”. It comes at a time

  2. Investing - Hedge funds bet on risks in U.S. blue-chip debt, Hedge funds bets against bank credit risk paying off, Tiger Global still likes Internet names, gets pointers from Jeter[more]

    Hedge funds bet on risks in U.S. blue-chip debt From WSJ.com: Hedge funds are betting the next bond sector to crack will be the $4.5 trillion market for the safest U.S. corporate debt. New York’s Perry Capital has placed a $1 billion wager against investment-grade bonds issued by 10 comp

  3. Short Selling - Hedge fund manager Kyle Bass is shorting real estate—again, Top US hedge fund has €80m short position in Paddy Power Betfair[more]

    Hedge fund manager Kyle Bass is shorting real estate—again From Fortune.com: He also predicted the mortgage crisis in 2008. Hedge fund manager Kyle Bass, who runs Dallas-based Hayman Capital, tanked the stock of a little-known real estate financier Friday by revealing that he is shorting

  4. Investing - Real estate secondaries sole 'bright spot' in 2015, As hedge funds stumble, one firm prepares to buy illiquid stakes[more]

    Real estate secondaries sole 'bright spot' in 2015 From IPE.com: The secondary market for property was the sole “bright spot” over the course of 2015, as hedge fund secondaries saw deals fall by two-thirds, according to a wide-ranging survey of the market. Setter Capital said 2015 saw th

  5. Asia - Hedge fund manager Kyle Bass estimates China's foreign reserves below critical level[more]

    From Nasdaq.com: Investor Kyle Bass stepped up his attack on China's currency, arguing in an investor letter distributed Wednesday that the second-largest economy's foreign reserves are "already below a critical level." The comments mark the latest effort by hedge funds and other investors to raise