University of Washington, Seattle, is looking to boost its allocation to hedge funds for its $1.9 billion in endowment and operating assets, said university financial officials.
For the $1 billion in endowment assets, trustees are considering pushing absolute-return strategies to the top of its 5% to 15% range from 10.5% as of Dec. 31, said VElla Warren, treasurer of the board of regents and assistant vice president-financial management.
Investments totaling $20 million in two new limited partnerships one long-short and one arbitrage manager probably will be proposed to the board in the next month or so, said Susan Ball, senior associate treasurer. She declined to name the managers. Another $20 million to $25 million likely will be handed out by year-end. Ms. Ball said she doesnt expect the fund to have more than a dozen hedge fund managers, including the seven already on the books, unless endowment officials decide to pursue sector or regional funds.