Institutional Investors Performance

US endowments make healthy strides


US colleges and university endowments and foundations had positive gains of 12% in 2010, up greatly from 2009’s losses of nearly 19% on average, according to the 2010 NACUBO-Commonfund Study.

Still struggling to maintain longer-term returns, endowments found strong gains in the alternative strategies category with distressed debt leading the way with gains of 25%. Marketable alternatives – a category that includes hedge funds, absolute return, market neutral, long/short, 130/30, event-driven strategies and derivatives – returned 10%.

Allocations to major asset classes were unchanged from 2009. Alternative strategies moved up to 52% from 51% previously. Smaller endowments displayed