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ERIC Number: EJ1114456
Record Type: Journal
Publication Date: 2016
Pages: 22
Abstractor: As Provided
ISSN: ISSN-1557-3060
What Do University Endowment Managers Worry About? An Analysis of Alternative Asset Investments and Background Income
Rosen, Harvey S.; Sappington, Alexander J. W.
Education Finance and Policy, v11 n4 p404-425 Fall 2016
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.
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Publication Type: Journal Articles; Reports - Research
Education Level: Higher Education; Postsecondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Grant or Contract Numbers: N/A