Thu, Nov 27, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

White paper finds endowments' allocation to hedge funds relatively stable but role has changed

Monday, March 10, 2014
Opalesque Industry Update - In its just-released white paper, "Endowment Interest and Allocation to Hedge Funds/Funds of Funds," Infovest21 examines endowments' use of hedge funds from both a qualitative and quantitative viewpoint.

The white paper explores endowment chief investment officers' and consultants' views on the role of hedge funds in the portfolio, hedge fund performance, strategy preference, types of managers preferred, changes in endowment asset allocation, fees, risk and risk management, and the OCIO trend.

Lois Peltz, president of Infovest21 and author of the report, said: "The percentage endowments allocate to hedge funds hasn't changed much but their role in the portfolio has matured since 2008. Hedge funds are being used in the endowment portfolio for different purposes."

While consultants may place hedge funds in different buckets e.g. return enhancement, growth or risk reducing, many endowments and consultants perceive hedge funds as risk reducers.

Other highlights of the report include:

- Hedge funds are increasingly viewed as a vehicle rather than an asset class.

- Endowments' allocation to hedge funds has remained relatively stable. Many endowment CIOs are not currently looking to increase allocations due in large part to uncertainty over hedge fund performance and strong equity markets.

- Consultants see a shift away from multi-strategy funds of funds. Global macro and long/short equity are strategies cited most often. There has also been recent interest in fixed income substitutes given concerns about fears about rising interest rates.

- More endowments are considering the outsourced chief investment officer model for some version of investment management, not necessarily the entire operation. The OCIO model is a way for some endowments to solve a resource problem.

Press release

Infovest21, founded in 2000, is an information provider to hedge fund investors, managers, funds of funds and service providers. Led by Lois Peltz, president, the firm provides news, research, surveys, white papers as well as organizes seminars and conferences. The firm's focus is on hedge funds, funds of funds and '40 Act funds.

infovest21.com

Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Unlucky Paulson & Co. rebrands $1.6bn Recovery Fund after 13% drop[more]

    From Businessweek.com: A maturing U.S. economic recovery is prompting Paulson & Co. to change course. The $19 billion hedge fund firm, led by billionaire John Paulson, told investors on a conference call this month that the Paulson Recovery Fund will be renamed Paulson Special Situations Fund on Jan

  2. Opalesque Roundtable: Islamic Finance races ahead with Sukuk, the first managed account platform, and foreign demand[more]

    Komfie Manalo, Opalesque Asia: A number of developments took place within Islamic finance in the past years, including the launch of a Islamic managed account platform and the further growth of the sukuk space that saw this instrument evolve from being a type of an ABS security that was rarely

  3. CTAs , event-driven strategies lead hedge funds recovery in mid-November[more]

    Komfie Manalo, Opalesque Asia: November’s performance proves to be in sharp contrast to the previous month, with equities further consolidating their upswing last week, according to the latest Lyxor Asset Management’s Weekly Brief. CTA funds als

  4. Fund Profile - A complex hedge fund strategy works for United Technologies[more]

    From Institutionalinvestor.com: Reports that portable alpha is dead have been greatly exaggerated, as Mark Twain might have phrased it. Another Connecticut Yankee, giant United Technologies Corp., is gearing up to grow its successful, nearly decade-long portable-alpha program. The UTC strategy took

  5. Opalesque Exclusive: The unintended consequences of Basel III[more]

    Benedicte Gravrand, Opalesque Geneva: Bijesh Amin, co-founder and managing director of Indus Valley Partners (IVP), a technology solutions and services firm focused on the alternative asset management industry, has recently observed