Boston Globe featured NEPC's Endowments & Foundations Quarterly Survey.
Foundations and endowments slow hedge fund exits
The 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. Scrutiny of hedge funds and their fees had mounted after several years of disappointing returns, prompting endowments and foundations to embrace exchange-traded funds over active management. The biggest bets in the first quarter among the largest US university endowments were in passive ETFs, including four of the five biggest public purchases, which accounted for more than $1.2 billion traded, according to data compiled by Bloomberg.