The cover article of Institutional Investor, “Yale’s Potential PE Sale Won’t Solve Liquidity Challenges,” provides an analysis of the school’s rationale behind its $6 billion sale in the secondaries market. James Comtois offers a detailed account of financial challenges facing the endowment, using MPI endowment liquidity analysis framework and quoting MPI CEO.
“Overweighting IT and the Mag 7 relative to the broad S&P 500″ may have helped boost returns… “Harvard seems to have overcome the drag of their significant private markets exposure to outperform our estimates—based on our models of their portfolio behavior through FY2023—by a surprising margin.” MPI CEO Michael Markov parsed Harvard University endowment’s solid return for fiscal year 2024 with Institutional Investor for James Comtois‘ story What Drove Harvard’s Returns? The article dissects the Harvard Management Company’s CEO N.P. “Narv” Narvekar annual letter to investors and the Harvard community through the lens of MPI’s quantitative prism.
Always an honor to have our work featured atop Institutional Investor‘s daily “The Essential” newsletter: Stocks Drove Pension Performance — Again. Solid context going beyond the patterns of the past couple years in Alicia McElhaney’s story on our projections of the largest public pensions’ returns for fiscal 2024.
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An extensive coverage by Julie Segal in her Institutional Investor article of the MPI’s 9-th annual Ivy League endowment report. She writes: “With little transparency into endowment portfolios, MPI used its proprietary returns-based style analysis to determine the exposure that the Ivy League and elite colleges had to major asset classes — and their contribution to the performance of the entire portfolio in fiscal year 2023… Even in a good year, “you’re not going to get a lot of transparency,” Markov [MPI’s CEO] told Institutional Investor. “But in a bad year, you’ll get zero transparency from endowments. It’s not pensions where they have to give something to people.”
Michael Thrasher with Institutional Investor provides an overview of MPI Transparency Lab’s FY2023 performance projections for major pensions and endowments in his article
Private Assets Drove Endowment and Pension Returns Last Year. Now They Are a Drag. He writes “…from returns you can glean a lot of information: risk, the skill, the trend, the style drift, you name it,” MPI chief executive Michael Markov said. Strategies change sometimes. When things don’t add up, there is a red flag.” Among MPI’s customers are U.S. regulators, who use its tools to surveil funds…
Institutional Investor article by Julie Segal based on the eight-year track record of MPI Eurekahedge 50 Tracker Index raises an important question: if the collective wisdom of top hedge fund managers results in index-like performance why take risks, headache and expense investing in large number of individual funds?
It’s no surprise that many endowments have had a tough year. But the reasons these organizations struggled weren’t all the same, as Institutional Investor showed in a story based exclusively on MPI’s research and Dynamic Style Analysis (DSA) and Stylus Pro technologies behind it.
“Evidence is piling up that allocators may be better off replicating the returns of the best hedge funds — a more complex version of indexing — rather than investing in them directly, ” writes Julie Segal with Institutional Investor in her piece about MPI’s latest research on Eurekahedge 50 index, developed in partnership with Eurekahedge, and the MPI Eurekahedge 50 Tracker.
“In an exclusive analysis for Institutional Investor, Markov Processes International concluded that that cryptocurrency hedge funds tend to perform on par with Bitcoin but with less downside risk. The analysis also found a large amount of dispersion between funds,” writes Alicia McElhaney from Institutional Investor in her article “Crypto Hedge Funds Deliver Bitcoin- Like Returns Without the Volatility.” Please read the MPI research report here.
“The type of analysis that MPI provides is particularly useful for determining broad exposures and risks in cases where data on underlying positions is not readily available — opaque hedge funds are a perfect example of this,” writes Julie Segal from Institutional Investor in her article covering latest MPI research.