Not-for-profit healthcare organizations earned an average investment return of 8.2% with their operating funds in 2004, according to a survey of 197 not-for-profit hospitals, systems and HMOs conducted by investment manager and consultant Commonfund. Although down from the previous year's average of 14.1%, the returns were healthy considering the market environment at the time, said Commonfund President and Chief Executive Officer Verne Sedlacek. Survey respondents' average allocation to the category of alternative investments rose to 10% of assets from 8% and their allocation to hedge funds climbed to 73% from 67%, according to Commonfund. Meanwhile, respondents lowered their exposure on average to the U.S. stock market, dropping their allocation to 34% from 37%. -- by Paul Barr
Not-for-profit investment returns drop in 2004
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