Endowments Say They Cut Use of Hedge Funds Because of High Fees
- Poll shows 37% of institutions reduced hedge fund wagers
- Institutions redeployed to fixed-income, private equity
Photographer: Victor J. Blue/Bloomberg
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Endowments and foundations cut their hedge fund exposure in the last year, citing high fees and concerns about liquidity and transparency.
A survey released Thursday found that 37% of institutions polled reduced hedge fund wagers, while 14% increased them and about half remained unchanged. About a fifth said they plan to cut their exposure to the asset class in the coming year, according to the report by investment consultant NEPC.