MFA Blog

University of Michigan Allocates up to $35 Million to Hedge Fund

Posted on September 25, 2013

Earlier this month, the University of Michigan Regents approved an allocation of funding up to $35 million to a hedge fund.  The investment comes from the University’s $8.5 billion long-term portfolio.  The aim of the investment, reported by Infovest21, is to “diversify the absolute return portfolio and further the endowment’s goal of maximizing the long term risk-adjusted return of the Long Term Portfolio.”

According to the University of Michigan, its endowment invests 16.2% of its assets in absolute return strategies.  Alternative assets, which comprise mostly illiquid investments such as venture capital, private equity, real estate, and natural resources, account for 53.2% of endowment assets.

The hedge fund that received the allocation takes long and short positions in publicly traded stocks.  Its portfolio is long biased, but has little to no leverage and usually takes 15-20 positions.

Learn more about this allocation news online from Infovest21.