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I think it leaves a bad taste in people's mouth since hedge funds are typically a bit riskier than a savings account.
by tombert 5y ago
I think it leaves a bad taste in people's mouth since hedge funds are typically a bit riskier than a savings account.
- finolex1 5y agoHedge funds have targets for volatility and rates of return that they try to meet. Endowment managers take such metrics into account when allocating money across different asset classes. They are most certainly not giving away their entire endowment to buy GME. The only controversy I can see is whether the returns provided by hedge funds outweigh the management/performance fees they charge.
- tombert 5y agoThat's fair, as I said I barely remember the details of this, and I know very very little about how these kinds of investments work.
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- carnitine 5y agoA savings account is not open to an endowment and will be eroded by inflation. Any university endowment will need to be invested in something riskier.
- ceilingcorner 5y agoSurely there is a stable middle ground between a savings account and a hedge fund?