Longhorns hold $1B in gold bullion

The University of Texas Investment Management Co. has taken the advice of Dallas hedge-fund manager J. Kyle Bass and now holds 6,643 gold bars, worth $987 million on April 15, in a bank warehouse in New York. The fund's managers sought to take delivery of bullion to protect against demand for the metal overwhelming supply, according to Mr. Bass, who made $500 million betting on a U.S. subprime-mortgage market collapse. Appointed to the endowment's board in August, Mr. Bass is a former salesman with Bear Stearns Cos. and Legg Mason Inc. He said about 5% of his hedge fund, Hayman Capital Management LP, is invested in gold. The Texas fund's $19.9 billion in assets ranked it behind only Harvard University's endowment as of August, according to the National Association of College and University Business Officers.