Norway SWF Up, Cuts External Management
The Government Pension Fund gained 18% in Q3 while at the same time reducing its reliance on external managers.
Newsmakers
While We Wait for Wolfe and Galbraith: A Review of Andrew Ross Sorkin's 'Too Big to Fail'
We don’t read books about the Great Depression that were written in 1932. We don’t read newspaper accounts of the Mercury astronaut program from 1961. Instead, we turn to John Kenneth Galbraith’s book from 1954 about the Crash, and Tom Wolfe’s 1979 account of pilots being shot into space.
Banker: SWFs To Go Heavy on Commodities, Emerging Markets
After 2008, when they were burned by financials, SWFs are likely to stick with a recent trend toward natural resources.
Bucking Trend, NY Common Fund Goes Further into Hedge Funds
Avoiding funds of funds, the New York State Common Retirement Fund is increasing its allocation to hedge funds in hopes of excess returns.
Feeling the Pain, Endowments Plan To Lower Private Equity Exposure
With poor returns and liquidity issues, endowments—heavily reliant on private equity in the past—say they will lower allocations to this alternative asset class.
Former CalPERS CIO Defends Illiquid Investment Strategy
Russell Read, the fund’s CIO from 2006 until 2008, defends moves he and the fund made into commodities, emerging markets, and private equity.
Bucking Trend, Stanford Changes Endowment Payout Policy
America’s third largest endowment will make cuts more quickly than many of its peers in hopes of returning to growth sooner.
Book Review: The Curse of the Mogul, Jonathan Knee
Any media executive who doesn’t “get” The Curse of the Mogul—or anyone who doesn’t think it will be a long term bestseller—proves the point that authors Jonathan A. Knee, Bruce C. Greenwald, and Ava Seave are making throughout the
Pension Fund Manager: Fearing Inflation, Institutions Will Turn to Gold
The director of global research at America’s seventh largest public pension is predicting that many of his peers will turn to gold to hedge against currency devaluation and inflation.
Rice University, Following Drawdown, Creates Investment Company
Following in the footsteps of Harvard and others, Rice has established the Rice Management Co., which will look after the school’s $3.6 billion endowment.
Harvard Confirms Swap, Real Estate Losses
Although the fund was known to be down 27% on the year, the recently released annual report shows that the University lost big on interest-rate swaps and real estate in fiscal 2009—and that the University also was, unusually, investing much of its General Operating Account alongside the rest of the endowment.
In October, Sovereign Funds Pursue Internal Stability and External Profit
Recent moves by the China Investment Corporation and the Qatar Investment Authority highlight sovereign funds’ dual role as stabilizers and profiteers.
Facing Possible Liquidity Issues, Stanford Initiates Private Equity Sale
Although the university is claiming that it doesn’t need the cash, Stanford has initiated a sale of up to $1 billion in private equity stakes in the secondary markets.
Hurting Like Others, Gates Foundation Tries New Investments
Having lost 20% of its value, the mighty Bill & Melinda Gates Foundation has turned to a novel investment approach to retain capital while still putting it to work.
Seeking Third World Investors, IFC Coaxes SWFs and Pensions
The IFC—a member of the World Bank group—is planning on working with SWFs and pension plans to create a $1 billion fund for investments in emerging and frontier markets.