How are college endowments similar to hedge funds?
For one, they put money into hedge funds as investors. And broadly, they're long on illiquid investments but have short term obligations for salaries, pensions etc. That's a hedge fund with a slightly different time horizon and intent.
Some of those short term obligations are covered thru grants, fed money. But when that dries up (eg, Harvard and Trump), you're squeezed.
For one, they put money into hedge funds as investors. And broadly, they're long on illiquid investments but have short term obligations for salaries, pensions etc. That's a hedge fund with a slightly different time horizon and intent.
Some of those short term obligations are covered thru grants, fed money. But when that dries up (eg, Harvard and Trump), you're squeezed.