UNC Management Co., which manages the $1.1 billion endowment of the University of North Carolina, Chapel Hill, will trim the fund's 55% hedge fund allocation "slowly, deliberately and at the margins," said Michael Hennessy, vice president. "As opportunities wax and wane, we may trim the overall allocation, get out of some strategies that aren't working right now. Coming out of the down market, there may be some low-lying fruit that can be cut," Mr. Hennessy said. UNC's board did not make formal changes to the fund's asset allocation and UNC Management did not specify how much would be cut from hedge funds. Mr. Hennessy did not identify the hedge funds which have been or might be cut. "We are not bullish on traditional asset classes, either," Mr. Hennessy said.