DePauw University, Greencastle, Ind., is almost finished selecting hedge fund managers as part of an overhaul of the $380 million endowment's asset allocation. The fund's hedge fund allocation was increased to 15% from 3%, and 17 to 18 managers are expected to be hired by April 1, said Carla McGuire, CIO. Hennessee Group was hired late last year to advise on direct investments with hedge fund managers.
The fund cut private equity to 13% from 15% and raised real assets to 8% from 2%. It will review private equity and real assets (including real estate and natural resources) portfolios, and real asset searches are a possibility, she said.
The fund's international equity allocation was increased to 15% from 10%, with emerging markets included in the portfolio; domestic equity was decreased to 31% from 46%; and domestic fixed income was reduced to 18% from 26%. Ms. McGuire did not say if managers were hired or terminated as a result of the allocation shifts. No consultant assisted with other asset class changes.