Foundation & Endowment Money Management - Pepperdine Eyes Distressed, Hard Assets

Pepperdine Eyes Distressed, Hard Assets

Jeff Pippin (second from right) and his band The $530 million Pepperdine University endowment is looking at distressed and hard assets to capture good opportunities for risk-adjusted returns. Pepperdine will likely look at some opportunities with existing managers as well as a couple of new firms running distressed bond and bank debt some time in the next six months, said Jeff Pippin, cio and senior v.p. The allocation would total about 2-3% and be funded pro rata from the fund's marketable securities investments.

The hard assets play is designed for inflation-hedging. "We believe that inflation will rear its head in a couple of years, so we're looking at hard assets, such as commodities and real estate for their hedging properties," Pippin explained. "It's a tactical play, not necessarily a long-term strategic move. We already have a 15% strategic allocation to inflation-hedging investments, and that's probably sufficient over a longer period."

The Malibu, Calif., fund makes tactical allocations in response to market opportunities by taking advantage of fairly wide ranges for asset classes in the strategic asset allocation plan. For ...

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Pepperdine Eyes Distressed, Hard Assets

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