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

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR