Hedge Funds
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. These returns, along with high fees, are of concern to Hedge Clippers, a group that says pension funds and endowments aren’t getting their money’s worth by investing with these managers. Shifting assets away from such high-fee investments means an endowment could pay out more money to lower tuition costs, according to a separate report set for release Monday.