Michigan State’s endowment posted a return of 3.5 percent in the fiscal year ended June 30, trailing an average of 3.9 percent for a benchmark of its peers, according to a university report. The fund gained an annual 7.3 percent over the past 10 years, beating a 7.1 percent gain for its peers.

Hedge Funds

The fund has 29.3 percent of its portfolio in hedge funds, as well as 14 percent in other private investments, according to an annual report. The rest is in more traditional public equity and fixed income securities.

While asset allocation won’t change much initially, Zecher said having an investment chief with greater discretion will help the East Lansing-based school secure stakes in new private equity and hedge funds that now take less time to raise money.

The hedge fund Zecher helped run had closed because of poor returns, which he attributed to low central bank lending rates undermining gains from currency markets. Among the other founders was Andrew Alper, a former partner at Goldman Sachs Group Inc. who has been chairman of the board at the University of Chicago.

Before EQA Partners, Zecher helped start Investor Analytics LLC, which builds models for financial firms to measure risk.

“He’s one of the leading experts in the field” of risk management, said Damian Handzy, a co-founder of Investor Analytics who also has a doctorate in nuclear physics from Michigan State. “I think it’s great for the endowment.”

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