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The other half is actively managed, again within the allocated risk parameters, by a mix of outside managers and Kjaer's own team, which handles 20% of the portfolio, both equities and fixed-income.
The use of outside managers has a variety of forms.
Yet Harvard does not disclose the names of outside managers who run one-third of its money, so students do not know many of its holdings.
Calpers, which has earned 3.4 percent annually over the last five years, is pushing the managers of the funds for lower fees as well as reducing the number of outside managers it uses to try to bring costs down.
Five Michigan governmental entities, including Detroit's school system and the cities of Flint and Benton Harbor, have been deemed in dire financial circumstances and placed under control of outside managers, who, under a new state law, have broader reach than ever, including the ability to toss out union contracts.
While Mott, which invests its endowment without the aid of outside managers, pays attention to proxy matters, it does not view its $3 billion in assets as a way to accomplish change at companies that prove themselves to be poor corporate citizens.
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Instead, Mr. Soros will reduce his staff and farm out much of the management of his fund group to outside managers like Mr. Bessent, in an attempt to greatly reduce risk and make his investment group a more suitable launching pad for his charitable endeavors.
The university, which has handled much of its money internally, would give the bulk of its funds to outside managers and lay off about half its staff.
Over the past two years, Laxey proposed the ouster of the long-serving chairman and chief executive, John Ritblat, and forced share repurchases and the contracting-out of its real estate portfolio to outside managers.
Though the School Reform Commission, the state panel charged with repairing the troubled district, assigned specific schools to each of the outside managers, the details of every arrangement must still be negotiated.
An early deal that sold the Silverdome, once valued at $22 million, for only $583,000 helped forge a deep distrust of the outside managers.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com