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Missed out on the rally in stocks? Don't feel bad, so have these huge investors...

Lauren Lyster

While U.S. stock indexes have at least doubled since 2009, some big investors have either missed out on the rally or are struggling despite those equity gains.

Wall Street Journal reporter Greg Zuckerman found that pension funds of corporations such as General Motors (GM) and university endowments have missed out on stock gains after a push to diversify into investments that have had disappointing performances, such as hedge funds, private equity and venture capital.

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"It was pretty startling when I looked at the numbers how little ... big endowments -- Harvard, Yale, Stanford -- have in U.S. stocks," he tells us in the accompanying video, noting that more broadly a poll found the average endowment has only about 16% of their portfolios in U.S. stocks. He says while that strategy has helped endowments over the past decade when some alternative investments were performing very well, it has hurt since 2009.

Zuckerman notes it could still work out because big institutions have long-term horizons, so they can handle underperformance for a few years. But he does "find it kind of remarkable that the shift [away from stocks into alternatives] continued even when stocks were cheap in 2009."

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Additionally, he reports that some of the biggest investors including hedge fund managers like Paul Tudor Jones are losing money with bets that have gone the wrong way in global markets, despite rising stock and bond prices. Check out the video to see why so-called macro investors have seen their performance suffer, and where else the ripple effect of their strategies has been felt.

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