Institutional Investors

Endowments feel the heat

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US universities have been unable to advance their hedge fund portfolios

By Susan Barreto

US universities learned the lesson of liquidity in 2008 in the hardest way possible - within both their private equity and hedge fund portfolios.

The five largest US university endowments - Harvard University, Yale University, University of Texas Investment Management Company, Stanford University and Princeton University - account for nearly $90 billion in combined assets after losing at least $33 billion since the middle of 2008.

Endowments, the seed capital for the hedge fund industry's best and brightest, will likely be unable to invest with new