The University of California endowment is continuing its hunt
for alpha as it seeks to add more non-conventional strategies
to its equity programme.
A portfolio recommendation made over the summer will have
the $6 billion plus endowment programme move capital to higher
beta and alpha strategies, with 10% of long equity moving to
opportunistic strategies that should offer higher returns and
lower downside risk than the previous asset allocation.
The University of California’s endowment pool
has the highest weighting to long-only equity and fixed-income
among US universities and the fifth from the lowest total in
alternatives, according to a recent presentation made to the
endowment’s investment committee. Marie Berggren,
chief investment officer, told trustees that in comparison with
private universities, that the University of California
endowment has a much...