Hedge Funds

Commonfund revolutionises endowment investing


By Ann C. Logue

Keith Luke
Nicholas De Monico
Commonfund is an untraditional leader in endowment investing. It is a non-profit organisation founded in 1971 with a $2.8 million Ford Foundation grant. Its objective was to improve the way that colleges and universities managed money so that they could serve their missions better.

At that time, the Modern Portfolio Theory was coming into vogue, changing the approach that many professional investors took towards running for-profit portfolios. Philanthropic accounts, by contrast, were often run by people with more sincerity than financial sophistication. Donors