by John Rubino
One of the big surprises of the past few years is the number of brand-name hedge funds reporting terrible results. Their customers are not amused:
(Bloomberg) – Following the lead of pensions, some U.S. endowments and foundations are souring on hedge funds.
Hedge fund fees and lagging performance are cause for concern for nonprofit investors, who are reducing their allocation, according to a survey published Monday by NEPC, a Boston-based consulting firm with 118 endowment and foundation clients with assets of $57 billion.
More than a quarter of 59 respondents said their investment committees reduced or were considering lowering their allocations to hedge funds.