Institutional Investors

Endowments feel the heat


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