Hedge Funds Have Stopped Hemorrhaging U.S. Endowment Clients
- About two-thirds of funds plan to maintain current exposure
- Low returns, high fees, lack of transparency are top concerns
The New York Stock Exchange (NYSE) stands in New York, U.S., on Friday, Aug. 12, 2016. U.S. stocks slipped, as lackluster data offered little incentive for investors to push equities higher after the three main benchmarks reached records on Thursday.
Photographer: John Taggart/BloombergThe wave of endowments and foundations cutting their exposure to hedge funds is abating.
That’s the conclusion of a survey released Tuesday by Boston-based consulting firm NEPC, which caters to 106 endowments and foundations with assets totaling $61 billion. Almost two-thirds of the 62 business officers who responded to questions said they planned to maintain their current exposure to so-called marketable alternatives, while less than a third cut their total allocation to the asset class in the past year.