Wed, Feb 20, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Commonfund cools on hedge funds, eyes credit in 2019

Wednesday, January 30, 2019

Bailey McCann, Opalesque New York:

Commonfund, a $24.8 billion asset manager for endowments, foundations, and pensions, has cut back its allocations to hedge funds citing a desire to preserve liquidity as managers struggle to take advantage of market moves.

In its recent outlook letter, the asset manager said that it is less concerned about managing volatility and more concerned about maintaining the liquidity its clients need to cover yearly spending. As a result, Commonfund reduced its exposure to hedge funds and increased its allocations to core bonds.

Commonfund's hedge fund portfolio is constructed to minimize correlation to equity markets and credit - which are the primary risks that already reside in policy portfolios - with an eye toward capturing risk premia. Speaking to reporters today in New York, Deborah Spalding, Commonfund co-Deputy CIO said that they've opted to stay out of some primary strategies like equity long/short in order to maintain lower correlations to the market. Commonfund changed ts overweight equities position to neutral in the fourth quarter of last year.

"We do think its hard for our institutional clients to meet their spending needs without an allocation to private funds. That said, we are focused on finding strategies that have clear sources of uncorrelated return," Spalding said. "Notably, if you look ......................

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. New Launches: Royal London launches new Greetham fund, Direct lending specialist unveils multi-manager credit fund, PeakSpan Capital announces final close for Fund II on $265m, Mubadala's venture capital unit to launch $400m European fund, Lazard offers Scandinavian bond fund[more]

    Royal London launches new Greetham fund From FT Adviser: Royal London's Multi Asset Strategies is the latest fund to be launched for Trevor Greetham and his eight-strong multi-asset team. It targets annualised total returns of cash, defined as the Sterling Overnight Index Average, p

  2. New Launches: AI venture capital firm InReach Ventures launches new $60m fund[more]

    From Telegraph: InReach Ventures, a venture capital firm using artificial intelligence to spot the most promising early stage startups in Europe, has closed a new EUR53m ($60m) fund, as it said the Brexit process would be unlikely to decrease entrepreneurship in the EU. InReach Ventures said it

  3. Outlook: Why Paul Tudor Jones fears a 'revolution', A lot of 'negative surprises' will hit the markets in coming months, hedge-fund veteran Mark Yusko says[more]

    Why Paul Tudor Jones fears a 'revolution' From Institutional Investor: Billionaire hedge fund manager Paul Tudor Jones; Robert Shiller, the Yale University professor who is a co-winner of the Nobel Prize in economic sciences; and DoubleLine Capital's deputy chief investment officer Jeff

  4. Performance: This small Austin based hedge fund founded by a successful Polish entrepreneur is beating market by recognizing growing moats[more]

    From Value Walk: Lukasz Tomicki, the founder of Austin, TX-based LRT Capital, had a life-changing moment after he achieved a degree of success. This led him into the hedge fund business where his emerging strategy has outperformed the major stock and hedge fund indices, he told ValueWalk. How the fu

  5. Opalesque Exclusive: BDO Survey: 89% of GPs expect a downturn within the next two years[more]

    Bailey McCann, Opalesque New York: Private equity appears to be preparing for the worst. 89 percent of private equity fund managers expect a prolonged downturn sometime in the next two years, according to the findings of a newly released survey from BDO. The trade war was cited as a top conce