Key Takeaways
- • The UConn Foundation, which manages the University of Connecticut's $634 million endowment, sold almost all of its hedge fund exposure in its most recent fiscal year and reallocated the proceeds into buffer ETFs.
- • Investment chair David Ford told Bloomberg that many hedge funds "don't justify the fees," the central rationale for the shift.
- • Nine months after the change, Ford says the strategy is working, according to Pensions & Investments (April 7, 2025).
- • The move is framed as a more cost-efficient approach to downside protection, with buffer ETFs positioned to limit losses in market downturns while still capturing some upside.
Summary
The University of Connecticut's endowment has moved away from hedge funds in favor of buffer exchange-traded funds, according to multiple reports. The UConn Foundation, which manages the $634 million endowment, sold most of its hedge fund holdings during its most recent fiscal year, which ended June 30, 2024, and bought buffer ETFs, according to Bloomberg and Pensions & Investments. Publisher materials date the decision to July 2024.
Foundation investment chair David Ford has been the primary public voice on the shift. Bloomberg quoted Ford saying many hedge funds "don't justify the fees," which he cited as the core reason for leaving the asset class. One report characterized the buffer ETFs as a more cost-efficient strategy than hedge fund exposure, though the available coverage does not provide a detailed fee comparison.
In an April 7, 2025 Pensions & Investments article, Ford said the approach is working roughly nine months into the change. The available reporting does not include specific performance figures, so the claim rests on the chair's assessment. The UConn case is being cited as an example of endowments reconsidering hedge fund allocations in favor of lower-cost, defined-outcome structures.
Foundation investment chair David Ford has been the primary public voice on the shift. Bloomberg quoted Ford saying many hedge funds "don't justify the fees," which he cited as the core reason for leaving the asset class. One report characterized the buffer ETFs as a more cost-efficient strategy than hedge fund exposure, though the available coverage does not provide a detailed fee comparison.
In an April 7, 2025 Pensions & Investments article, Ford said the approach is working roughly nine months into the change. The available reporting does not include specific performance figures, so the claim rests on the chair's assessment. The UConn case is being cited as an example of endowments reconsidering hedge fund allocations in favor of lower-cost, defined-outcome structures.
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