Small Endowments Lose Money on Hedge Funds, Trailing Big Schools
- Endowments under $25 million lost 0.5 percent in alternatives
- Hedge funds received $2.5 billion in fees in 2015, study says
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Smaller U.S. college endowments lost money on their hedge fund investments in the most recent year, trailing larger universities that often have access to better-performing managers.
Endowments with assets under $25 million lost an average 0.5 percent on hedged strategies in the year ended June 30, according to a survey by a trade group that represents college business officers. Overall these funds gained 2.3 percent, just below the average for endowments of all sizes. The Standard & Poor’s 500-Stock Index gained 4.6 percent in that time.