Three Eras of Endowment Performance Between 1974 and 2019
10 Pages Posted:
Date Written: July 12, 2020
Three eras define the performance of endowments since 1974. Large funds underperformed by the approximate margin of their costs in the first and third eras. In the middle era, they outperformed by a wide margin. Over the full period, large endowment fund managers, collectively, added value for their institutions. Small endowment funds underperformed over the three eras. These assets should be managed passively at next to no cost.
Keywords: Wealth Management, Endowment Funds, Pension Funds, Alternative Investments, Portfolio Choice
JEL Classification: G11
Suggested Citation: Suggested Citation