Penn Takes Profits On Credit Hedge Funds

Feb 21 2012 | 1:19am ET

Having grown fat on credit hedge funds, one Ivy League school's endowment is taking profits.

The University of Pennsylvania's $6.6 billion endowment plans to cut its credit hedge fund investments and move the money elsewhere. Which is not to say that the Philadelphia school, home to the Wharton School of Business, has soured on the asset class.

"We had an oversized position in credit," chief investment officer Kristin Gilbertson told Bloomberg News. "It's gone up so it's more fairly valued. We were taking some winnings off the table."

Penn has a 25% allocation to hedge funds and is adjusting its weightings within the asset class, Gilbertson said.

Penn's endowment returned 19% in the year-ended June 30, compared to returns slightly in excess of 20% for its larger rivals, Harvard University and Yale University.

Gilbertson also said that Penn is joining with other institutional investors in demanding fee breaks from its hedge fund managers.

"We are pushing back on fees," she told the National Association of College and University Business Officers' Endowment Management Forum. "The bar is very high to get that carry."


In Depth

Hedge Funds Take Interest In ‘Soft Deposits’

Nov 19 2014 | 11:56am ET

New York-based Winchester Equities, headed by Avi Benamu and Jack Hazan, funds soft...

Lifestyle

Cohen Buys $101 Million Sculpture

Nov 12 2014 | 9:17am ET

Steven Cohen was the sole bidder for a rare Alberto Giacometti sculpture at Sotheby...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.