Long-short stock funds look especially attractive to Carnegie. Managers in the foundation’s portfolio are beginning to make money with their bearish bets “for the first time in a long time,” she said.
Carnegie also likes credit hedge funds. That doesn’t necessarily include so-called drawdown vehicles, an increasingly popular structure that enables clients to avoid paying fees until money is called for investment opportunities.
“At the end of the day we’re backing talent, and talent needs to keep the lights on,” Jones said. “They need to research. They need to be able to execute even when what they’re doing is out of favor.”
This article was provided by Bloomberg News.