Nobel Foundation To Boost Hedge Funds

Dec 4 2012 | 11:46am ET

Future generations may have hedge funds to thank for the survival of the Nobel Prizes.

The Nobel Foundation plans to increase its investments in hedge funds in an effort to increase its returns. Investment losses of 18% over the last five years forced the foundation to cut the cash award attached to the prize by 20%, to 8 million Swedish kronor (US$1.2 million).

"When we look at the analysis we see that we can get more return with less risks by doing that," executive director Lars Heikensten told Bloomberg News. "If we can choose hedge funds that we trust, then we can get better returns for given risks."

Heikensten said the Nobel Foundation required a 3.5% to 4% return on its US$450 million endowment to maintain its capital base. It's instead earned just 1.5% to 2% over the past decade, and "had in fact been spending more every year on average than" it had earned.

The Nobel Foundation currently has 24% of its money invested in hedge funds and private equity funds, up from 6% five years ago.

Among the new managers entrusted with Alfred Nobel's bequest are Nektar Asset Management's Kent Janer and Rational Asset Management's Sven Nyman, both of Sweden.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

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.