Can Annual Returns Be Used to Unlock the Sources of Top Endowment Performance?
Using MPI's Dynamic Style Analysis and public annual return disclosures we attempt to provide transparency on allocation decisions and performance results of some of the largest and most successful investors in the world.
A Sneak Peek of MPI’s Endowment Study.
Fall has brought with it excitement and some surprise in a much-watched annual contest. No, we’re not talking about the World Series but rather endowment-reporting season. Fiscal year (FY) 2015 returns1 are now in from many of the top college endowments. Bowdoin, with almost $1.4B AUM, has taken top honors thus far (14.4%). Harvard – the largest endowment – turned in a 5.8% return. In this post we will analyze the top endowment funds using MPI’s patented Dynamic Style Analysis (“DSA”) model, which has become a solution for investors assessing complex funds and those with limited data disclosures (e.g., hedge funds). This analysis provides insight into these top endowments that cannot be achieved using other methods and suggests reasons for the range of performance outcomes they report.
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