What Do University Endowment Managers Worry About? An Analysis of Alternative Asset Investments and Background Income

Autor:	Alexander J. W. Sappington, Harvey S. Rosen
Rok vydání:	2016
Předmět:	Finance 050208 finance Comprehensive income business.industry 05 social sciences Global assets under management Venture capital jel:I22 Hedge fund Education jel:I23 Private equity 0502 economics and business Economics Portfolio Alternative investment 050207 economics business Alternative asset
Zdroj:	Education Finance and Policy. 11:404-425
ISSN:	1557-3079 1557-3060
Popis:	This paper examines whether university endowment managers think only in terms of the assets they manage or also take into account background income, that is, the other flows of income to the university. Specifically, we test whether the level and variability of a university's background income (e.g., from tuition and government grants) affect its endowment's allocations to so-called alternative assets, such as hedge funds, private equity, and venture capital. We find that both the probability of investing in alternative assets and the proportion of the portfolio invested in such assets increase with expected background income and decrease with its variability.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::a0f5c1f08399444b8d9d7a23c6689d0a https://doi.org/10.1162/edfp_a_00193 Zobrazit plný text záznamu