endowments

How Brown Outperformed for the Second Year in a Row

For the second straight year, Brown outperformed all other Ivy endowments by a large margin. Our research team, using MPI Stylus Pro to dissect the endowment annual returns, provides a plausible explanation of the endowment’s spectacular results.

Harvard and Yale Are No Match for the Bears

“…how was it possible for so many endowments to make bad choices among private equity and venture capital funds? The following chart from Markov suggests that it is down to outlandishly wide variations in performance within the private equity/venture capital world,” writes John Authers about MPI’s research in his opinion piece on Bloomberg.

Outsmarted: Why investor brainiacs couldn’t beat the market over the past decade

Ian McGugan, investing columnist at Canada’s premier daily Globe & Mail wrote a column reviewing the decade and discussing why beta was so hard to beat has a prominent mention of the Ivy endowments’ failure to beat a 60/40 portfolio and MPI’s research.

A College Investor Who Beats the Ivys

“Bowdoin posted an 8.8 percent average annual return over the 10 years that ended June 30, handily beating the 6 percent average for all college endowments with assets of more than $1 billion, according to a national study. The school also outperformed all eight Ivy League endowments, none of which managed to beat the 8.1 percent average annual performance of a plain vanilla portfolio consisting of stock and bond indexes, according to Markov Processes International, a research firm.” Read the full article here. (subscription required)

Broken Trust, Texas’ huge school endowment pays out less and less for school children

“One way to look at a fund’s performance is by its growth in market value. Another way is to examine its returns. Analysts at Markov Processes International, a global investment research and technology firm, estimated that the fund was performing comparable to the worst-performing Ivy League endowments. One hundred dollars invested in the top-performing Ivy League endowments about a decade ago would be worth roughly $250 now. The Ivy average came in at about $220. The same cash put in the Permanent School Fund would now be valued at about $190. Read the full article here.

Bad Manager Picks Have Sunk Pensions’ Bet on Alts

“Public pension funds aren’t the only institutions to fail to benefit from the heady promise of alternatives. The performance of Ivy League endowments has trailed a passive portfolio of 60 percent U.S. stocks and 40 percent bonds over the past ten years — and has been more volatile to boot, according to a report from research and analytics provider Markov Processes International.” Read the full article here.