As the fiscal year for most university endowments comes to a close, the five largest single-school endowments, led by Harvard and Yale, are poised for declines ranging from 25% to 30% while the median losses for endowments with less than $100 million stands at 16.3%, according to the Wall Street Journal.
The larger endowments have routinely outperformed their smaller peers over the last few years by adopting investment strategies that take advantage of sophisticated investment vehicles including hedge funds, private equity and venture capital. Their smaller counterparts typically employ simpler, less risky strategies, an approach which has rewarded them over the last 12 months.
According to Northern Trust, the median loss for all endowments up until the last month of the fiscal year was 20%.
|
