Smaller IHEs Try To Boost Endowments With Hedge Funds

According to a BusinessWeek analysis of data from NACUBO, a dozen endowments had more than 40% of their portfolios in these higher-risk investments as of June 30, 2005 (table). Included are the College of Wooster in Wooster, Ohio, at 82.4%, and Yeshiva University in New York City, at 65.3%. "We all very much envy the success of Harvard and Yale's endowments," says Bob Walton, vice-president for finance and business at the College of Wooster. "When you look at how they achieve their returns, a lot of it has come through alternative investments like hedge funds." But the heavy reliance on hedge funds raises concerns that smaller institutions are moving into these investments just as performance may be peaking. Read more at:
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