Work

Investment beliefs of endowments

Year: 2018

Type: article

Abstract: United States university and college endowments now hold close to one‐third of their portfolios in private equity and hedge funds. We estimate the implied beliefs of endowments on these alternative assets’ returns relative to equities and bonds. At the end of 2012, the typical endowment believes that its private equity investments will outperform a portfolio of conventional assets by 3.9% per year, and hedge funds will outperform by 0.7% per year. Taking into account the implied equity exposures in alternative asset positions, the effective equity holding of endowments is approximately 60%.

Source: European Financial Management

DOI: 10.1111/eufm.12149

Authors: Andrew Ang, Andrés Ayala, William N. Goetzmann

Institutions: National Bureau of Economic Research, Columbia University, Yale University

Language: English

Topic: Financial Markets and Investment Strategies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W3121444141

FWCI: 2.64

Cites: 67

Cited by: 23

Related to: 10