Institutional Investors

Foundations’ hedge fund portfolios in the red, says Commonfund


The latest Commonfund Benchmarks Study has tracked average hedge fund portfolio losses of 2.3% among foundations and other charitable investment portfolios for fiscal year 2011.

The average total net return reported by independent/private foundations and community foundations in the study was -0.9% as compared with 12.5% in fiscal year 2010 and 20.9% in 2009.

The 2011 results mark the first time since 2008 that foundations and operating charities have reported negative returns. The 179 participating foundations represented a combined total of $100.4 billion in assets, comprising 133 independent/private foundations and 46 community foundations.

The best returns were in