Institutional Investors

University of California ready to add three hedge funds with targeted approach


The $40 billion University of California endowment and pension plan continues to allocate to absolute return strategies despite being the programme being down nine basis points for the fiscal year to date.

On a trailing five year period ending this past March, the $4 billion absolute return programme has outperformed the equity markets with much less volatility, while 2011 was a challenging year for hedge fund strategies with extreme volatility and record high correlations to traditional markets. The nine-year old programme currently invests in 43 managers with a 23.7% allocation to hedge funds within the general endowment fund