Hedge Funds

Endowments post big gains


After years of disappointing returns, educational endowments enjoyed a healthy fiscal year for 2004, generating an average return of 14.7% for the 12 months ending June 30, according to a new survey from The Commonfund.

But the biggest gains didn't come from hedge funds, according to the survey of 707 endowments. Surprisingly, the survey showed that the best performing endowments have generally been allocating away from hedge funds, and that the best-performing endowments were heavily invested in real estate and energy.

The top performing endowment was Harvard University, which returned 21.1%, bringing its total value to $22.6 for the