Allocations to Alternatives by
Alternatives include hedge funds, real estate, private equity,
commodities and others.3
University endowments and Fortune 500 pension plans
allocate substantially to private equity and hedge funds.
% of total portfolio allocated to private equity & hedge funds.4
The investment objectives, time horizon, risk tolerance, asset allocations, tax considerations, and other significant attributes of these and similar institutional investors may differ substantially from those of an individual investor.
Manager Selection Matters
Top quartile private equity and hedge fund managers can outperform bottom quartile
managers by 10-12 percentage points per year.7
1. Preqin Alternatives in 2020 report
4. 2018 Annual Report of each institution (for public corporations reference Form 10-K)
5. Pensions & Investments 2019