I could be misremembering this, but wasn't there some drama about five years ago about schools literally investing a lot of their endowment and the like in hedge funds?
1. Hedge funds donate to endowments
2. Endowments invest back into hedge funds
3. Hedge funds list endowments as investors in their marketing
4. Clients invest with HFs thinking endowments must have done their due diligence.
The only controversy I can see is whether the returns provided by hedge funds outweigh the management/performance fees they charge.
It's seriously telling of why Western economies don't grow like they used to.
Money became a hot potato business where nobody has the arrogance to say "Ok, I will do this on my own"
The and Bill Gates and Mark Zuckerberg of today aren't leaving Harvard anymore.
I guess almost any large store of money is going to be invested in the market tho