Endowments And Foundations Return To Hedge Funds

By Don Steinbrugge, Agecroft Partners -- Large Endowments and Foundations were early adopters of hedge funds in their portfolios with many allocating approximately 50% of their asset allocation. However, in the two years following the financial markets meltdown, these same investors stayed primarily on the sidelines for new hedge fund allocations. Over the past 6 months, however, there has been a significant increase in the search activity for endowments and foundations and this trend is expected to continue for the foreseeable future.