Markov Processes International

Princeton & Columbia Endowments Projected as Big Winners in FY2018

Based on the factor-mimicking portfolios we have constructed for each Ivy League endowment using our patented Dynamic Style Analysis (DSA)1 model, we’re projecting Princeton and Columbia endowments to deliver the highest returns among the Ivies in fiscal year 2018. Currently, Brown leads all Ivies with 13.2 percent,2 a number we accurately projected in our recent post, Measuring the Ivy 2018 Halftime Report.

Our fiscal year 2018 projections are based on the latest estimated exposures obtained by using reported annual endowment performance through fiscal year 2017 and asset class performance numbers for 2018. Although most of the reported Ivy endowment results came within 50 basis points of our projections, some differences, driven by specific investment decisions, were expected. At the same time, our results underscore that, similar to pensions, the lion share of elite endowment performance is explained by their exposure to major asset classes.


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