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Note: The $620 million Mount Holyoke College endowment is planning to diversify to reduce risk.
Audrey McNiff
The $620 million Mount Holyoke College endowment is planning to diversify to reduce risk. As part of its efforts, the endowment incorporated a commodities-driven hedge fund along with a global equity long/short vehicle into its portfolio in January. "We're looking for diversification across managers, asset class and vintage year," said Audrey McNiff, global co-head of foreign exchange and derivatives prime brokerage at Goldman Sachs, who chairs the all-women's college's investment committee.
The fund uses more than 20 managers in its alternatives portfolio, and that number is trending up as the school seeks to avoid concentrating its assets. Since 2007, it added equity long/short investments with Kensico Capital and Shumway Capital, global and emerging markets equity with Lone Dragon Pine, and distressed investments with Centerbridge Credit Partners, among other additions.
Mount Holyoke allocates 40% to global equity, 20% to marketable alternatives, 15% to inflation hedging instruments such...