Yale Beats Harvard Again

Posted on 10/01/2018

Yale’s massive endowment beat Harvard again. The endowment returned 12.3% (net of all fees) for the year ended June 30, 2018. The endowment assets surged to US$ 29.4 billion as of June 30, 2018. The Harvard Management Company, which oversees the endowment, generated a 10% for the same period compared to Yale. Harvard’s endowment is bigger at US$ 39.2 billion. Yale avoided an overhaul of its endowment like Harvard. Harvard endowment’s CEO N. P. Narvekar is still realigning the portfolio, selling off assets and reducing staff closer to 100 people.

For Yale, U.S. stocks generated a 12.4% return versus foreign equities at 14%. Yale’s absolute return portfolio generated a return of 4.8%, while venture capital posted a return of 16%. Surprisingly, Yale struggled with real estate at 2.7% and natural resources at 1.7%.

Out of all the Ivy League schools, Princeton leads the pack with 14.2% return for fiscal year 2018, with Brown University coming in at second place with a 2018 FY return of 13.2%.

Big Bet on VC, Lowering U.S. Stocks

Yale has a 26% asset allocation target to absolute return for fiscal year 2019 and a 18% target for venture capital, while targeting 3% for U.S. stocks.

Keywords: Yale Investment Office.

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