Institutional Investors

Cornell trims hedge fund portfolio

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Cornell University is said to be cutting its hedge fund portfolio by as much as 25% to save on fees, after the $6 billion endowment saw assets fall by 27% in 2008 and the actual asset percentage in hedge funds rise to 15% from 10%.

The university's board of trustees approved plans to sell up to $500 million in taxable bonds to provide working capital and institutional liquidity, which officials say is similar to what is being done at other universities.

The goal is to alleviate pressure on the endowment and other sources of