The University of Rochester, which had greater exposure to alternatives than it did to stocks, gained a better-than-average 14.3 percent for its $2.3 billion fund.
Rochester Chief Investment Officer Doug Phillips said its 21 percent allocation to public and private investments in emerging markets, particularly Asia, paid off. The asset allocation will be largely unchanged for the current fiscal year, he said in an interview.
Glenmede’s Conish said he’s telling clients to focus on the long term instead of rushing into public equities that look overvalued.
“Now is the worst possible time to move out of alternatives,” he said. “The added benefit of investing in private markets is the higher return potential and improved risk/reward profile. Over the long term, that plays out and you’re rewarded.”
This article was provided by Bloomberg News.