Indiana University Foundation

Before its 2002 foray into hedge funds, the IUF had a fairly traditional 70/30 investment strategy and was “at the mercy of the equity and bond markets,” according to Stratten, 46, who has been with the fund since 1993.

In the four years since the Indiana University Foundation first ventured into the world of alternative investments, hedge funds have been good to the $1.3 billion endowment. The Bloomington-based foundation, whose main goal is to provide scholarships and other sorts of support for Indiana University students, has delivered an average annual return of 20.7

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