Browsing: Commonfund

Posts Tagged ‘ Commonfund ’

Foundations: They’ve Taken a Blow from “Subdued” Markets

Sep 2nd, 2015 | Filed under: Hedge Fund Industry Trends, Performance, Analytics & Metrics, Hedge Fund Strategies, Institutional Investing, Indexes, Risk management, Liquid Alts

Both private and community foundations depend heavily on U.S. equities. Indeed, domestic equities remained the bright spot while other strategies underperformed in 2014. A new report from a collaboration of the Council on Foundations and Commonfund provides food for thought about the reversal in foundation returns in that year. TheRead More

The Delusions a Boom Can Bring and the Perils of Chasing Hedge Fund Winners

Aug 28th, 2014 | Filed under: Portable Alpha & Alpha/Beta Separation, Institutional Investing, Alpha Hunters, Alpha Strategies, Risk management

For an investor allocating slots in its portfolio to hedge funds, the draw of recent outsized performance can be powerful. Thus, the temptation to chase winners. But two members of the Hedge Fund Strategies Group at Commonfund caution against it. Read More

College Endowments: Bad News and a Slender Silver Lining

Feb 7th, 2013 | Filed under: Institutional Investing, Alpha Strategies

For the alternative-investment industry the takeaway from the NACUBO-Commonfund Study this year may be that there is a long-term trend among endowments toward increased allocations to alternative strategies, and that this trend continues. The overall such allocation increased by one percentage point from 2011 to 2012: to 54 percent.Read More

140% or More: Rehypothecation for Risk Managers

Nov 28th, 2012 | Filed under: Hedge Fund Operations and Risk Management, Risk management

As David Belmont reminds us in his new paper for the Commonfund Institute, in the U.S. there are limits on the practrice of rehypothecation. A broker can only reuse in this way assets of up to 140 percent of the value of the client's liability to said broker. Intriguingly, in the U.K. there are no such statutory limits. Read More

Healthcare Nonprofit Investments: The Case for Boredom

Sep 11th, 2012 | Filed under: Institutional Investing, Asset allocation

It is good that the stuffy old healthcare organizational folks stuck with fixed income investments!, because those investments did better than any other asset class as a component of their FY2011 returns. Fixed income returned 5.4 percent. The more exciting field of international equities was the big loser, with a -10.9 percent return.Read More

A Paradox: Avoid Correlation by Following the Trends

Apr 2nd, 2012 | Filed under: Commodities, CTA, Institutional Investing

According to its advocates, trend following as a strategy works from the premise that price trends represent a process of consensus building. As a new idea takes hold, "the earliest adopters of this idea place their trades in accordance with it" and they get to watch in satisfaction as "a growing mass of market participants adopts the same thesis. Early adopters can surf the wave to the beach.Read More

Average College Endowment Performance Improves and Size Matters

Feb 14th, 2012 | Filed under: Hedge Fund Industry Trends, Institutional Investing, Alpha Strategies, Fees

Data on the endowments of institutions of higher learning shows a significant spread between the performance of the largest endowments and the lagging performance of the smaller. The return that endowments received on their use of alternative strategies, too, depends in part upon the size of the endowment doing the investing. Endowments under $25 million in assets under management made only 9.5 percent on this asset class in FY 2011, while those with more than $1 billion in AUM made a 16.9 percent return hunting in the same jungles.Read More