Veriti In the News: Surprise Redux! Endowments Have Underperformed the 60/40 Benchmark After All

Hammond answers Kazemi’s recent assertion that endowment studies are flawed.

In his recent paper jointly produced with CAIA entitled “Surprise, Endowments Have Significantly Outperformed the 60/40 Benchmark”, Dr. Hossein Kazemi attempts to assuage any concern endowment managers and their advisors may have. According to Dennis Hammond, Veriti’s Head of Institutional Investments:

“In so doing, he [Kazemi] provides two false hopes—first, that endowments have ‘significantly outperformed the 60/40 benchmark’ as evidenced by their outperformance of a global 60/40 mix, and second, that alternative investments have provided endowments with additional returns. Unfortunately, relative to the average and smaller endowments, neither assertion is accurate.”

Read Hammond’s Surprise Redux here to learn why.

Credit: SSRN, September 5, 2020