University of Colorado Endowment Gains 11% on Alternative Wagers

(Bloomberg) -- The University of Colorado Foundation investments gained 11 percent for the fiscal year, a strong showing as endowments begin reporting their performance.

The fund was valued at $1.67 billion as of June 30, with $1.36 billion coming from the Colorado endowment, according to a university report. The fund notched an annualized gain of 7.5 percent over three years.

Colorado outperformed its benchmark in the 12 months through June by investing almost half of its assets in private capital, real assets and hedge funds. The university also beat the median annual return of 7.4 percent, gross of fees, for U.S. endowments, according to data compiled by the Wilshire Trust Universe Comparison Service.

“In an environment of increased volatility, alternative investments such as hedge funds and private capital play an important role in portfolio construction,’’ Chris Bittman, a partner at Perella Weinberg Partners, which manages the fund, said in the statement.

Colleges start reporting their endowment results for the fiscal year in the fall as they receive performance on their private investments. Carthage College, the Wisconsin school with a fund of $120 million invested mostly in index funds, returned about 11 percent in fiscal 2018.

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