FundFire: Endowments weigh cash needs and rebalancing amid market turmoil
University endowments lost billions in value during the coronavirus and oil-shock-induced stock market rout. Yet, with valuations coming down, some are putting money to work to remedy underweight equity allocations.
“The depth and duration of this crisis are very uncertain, but at the same time, as markets fall, there are more compelling valuations in equities,” says Texas Hemmaplardh, a partner at Mercer. That’s why his team has been advising clients to consider partial rebalancing and taking some of the earlier gains in parts of the fixed income market and moving them to equities.