In search of high returns, institutional investors have continued to brave the risks of the hedge fund market. Here is a list of some deals made over the past few months:
The $225 million Northeastern University endowment, Boston, hired Standish, Ayer & Wood, Boston, to run $20 million in a long-short hedge fund strategy, according to Joseph Murphy, assistant treasurer.
The $70 million endowment of Clark University, Worcester, Mass., moved $16 million into five private equity partnerships, including two funds-of-funds and a debt restructuring fund, said James Collins, executive vice president and treasurer.
The partnerships are: HPB Associates, L.P. New York; Charter Oak; Pine Street Partners L.P., New York; Bennett Restructuring Fund L.P., New York; and Blackstone Partners Investment Fund, New York.
The University of Miami put 5% of its $300 million endowment with three hedge fund managers: a fund run by Dawson-Samberg Capital Management Inc., Southport, Conn.; Granite Growth L.P., New York; and a fund run by M.H. Davidson & Co., New York, said Diane M. Cook, vice president and treasurer.
The $400 million University of North Carolina endowment, Chapel Hill, doubled to $24 million from $12 million a hedge fund run by Hellman Jordan Management Co., Boston, funding it by reducing to $24 million from $36 million a hedge fund run by Essex Investment Management Co., Boston, said Wayne Morgan, director-investments.
The Michigan State University long-term investment pool, with $110 million in endowment and $40 million in pension assets, hired its first managers in hedge funds and distressed securities, said Nancy E. Craig, director-investments and trusts for the East Lansing, Mich.-based institution.
For hedge funds, it assigned $4 million to Pequot Partners Fund L.P., New York, and $2 million to Emerald Partners L.P., also of New York. For distressed securities, it assigned $4 million to Farallon Capital Institutional Partners, San Francisco, and $2 million to Davidson Kempner.
The $30 Hamlin Univeristy endowment, St. Paul, Minn., hired Centurion Trust Co., Chicago, assigning it $5 million to run in a fund of hedge funds, investing in about 50 managers of managed futures trading, market neutral and long-and-short equity strategies, said Peter W. Lilienthal, vice president-finance and operations.
In addition, Hamlin hired Clifton Group, Minneapolis, assigning it about $300,000 to invest in an index-option hedging strategy, he added.
Jeffrey Slocum & Associates Inc., Minneapolis, assisted in the searches.
Also more than doubling its allocation to the area, the $110 Colby College endowment, Waterville, Maine, added three hedge fund managers, said Douglas E. Reinhardt, treasurer. The move raised the endowment's hedge fund allocation to 10% from 4%. Mr. Reinhardt declined to disclose the names of Colby's managers.
Making its first move to the area, the $19 million pension fund of the American Jewish Joint Distribution Committee Inc., New York, hired two hedge fund managers - Bridge Partners, New York, and Glenwood Partners, Chicago, said June Matican, assistant chief financial officer. The fund assigned each firm $2 million.
Lafayette College, Easton, Mass., with about $300 million in endowment assets, invested $3 million in a fund of hedge funds run by New Vernon Partners, according to Rosemary M. Bader, assistant treasurer.
The $50 million Norwich University endowment, Northfield, Vt., put $500,000 in a new hedge fund program introduced by The Common Fund, Westport, Conn., and added $500,000 to a $1.3 million portfolio with Davidson Kempner Institutional Partners L.P., New York, said J. Fred Weintz Jr., trustee and chairman of its investment committee.
The $550 million endowment of Case Western Reserve University, Cleveland, hired hedge fund Tiger Fund L.P., New York, for an undisclosed amount, said Kathleen Chapman, assistant treasurer.
Oberlin College, Oberlin, Ohio, hired The Blackstone Group, New York, to manage an undisclosed amount in a fund of hedge funds for its $275 million endowment, said Charles Tharp, treasurer.
Cambridge Associates Inc., Boston, is the fund's consultant, although the search was conducted in-house.
The University of Iowa Foundation, Iowa City, hired two hedge fund managers - Granite Capital and Everest Capital Fund L.P., Hamilton, Bermuda, said Larry Bruse, director-finance and treasurer. Further details of the hiring were unavailable.
A Centurion-affiliated hedge fund manager, the $88 million Glenwood Partners, Chicago, fund of funds, which includes some $20 million from pension funds and endowments, earlier invested $1 million in the Quartz Hedge Fund managed by Askin Capital Management L.P., New York, said Christopher P. Brown, Glenwood director-research.
Only about a month later, Glenwood wrote off its entire investment in Quartz, plus other investments (probably another $1.5 million or so) in other Askin hedge funds when Askin went bust.
