The University of North Carolina Investment Fund, which manages the $12.2bn endowment for UNC Chapel Hill and affiliated campuses, posted a 11.6% return for the fiscal year ended 30 June, driven in part by strong performances from its hedge fund investments, according to a report by Pensions & Investments Online.
The endowment outperformed not benchmark of 9.2% over the period, according to its latest investment report, with Long=short equity its top performing asset class with a 23.45 return for the year.
CEO and CIO Jonathon King, who is retiring, described the returns as “unbelievable,” noting that the strategy excelled in navigating market volatility.
Other contributors included long equity (15.5%), fixed income (12.4%), and private equity (10.6%). King highlighted the endowment’s private equity portfolio, particularly venture capital, as “world-class”. Over a five-year period, private equity returned 23.5%, while long-short equity achieved 12.9%, exceeding its benchmark of 10%.
The endowment’s asset allocation as of June 2024 reflected a strong hedge fund orientation, with 14.9% allocated to long-short equity, 32.4% to private equity, and 25.6% to long equity, alongside real estate, diversifying strategies, fixed income, and energy/natural resources.
