MFA Blog

Hedge Funds Help Universities Meet Important Financial Obligations

Posted on February 11, 2014

As universities and other institutions face growing challenges toward meeting their financial obligations, hedge funds have assisted in placing them on firmer ground over the long term.  The partnership between university and college endowments and hedge funds has grown in recent years, and MFA has a new educational resource to help explain how the partnership works.

With 66% of hedge fund assets held by institutional investors – including university and college endowments – hedge funds are working more closely than ever with these investors to help them meet their obligations.  From financial aid scholarships to research and clinical trials, athletics to building projects and operations, universities face a number of funding obligations.  As some of the first institutions to partner with hedge funds in the early 1990s, the relationship between universities and hedge funds has grown stronger over the years.

In fact, according to recent data from the National Association of College and University Business Officers (NACUBO), endowments have steadily increased investment allocations to alternatives – including hedge funds – over the last 10 years.  For many educational institutions, hedge funds are an important tool used to diversify their portfolios, manage risk and produce reliable returns.

Learn more about hedge funds and universities with the presentation below.  You can also download and read the presentation online through SlideShare.