Endowment
InvestingDefinition
A pool of donated capital invested to fund the operations of a non-profit (university, foundation, hospital). Long investment horizon enables higher equity + alternatives exposure than typical institutions.
Largest US: Harvard ($50B), UT System ($45B), Yale ($40B), Stanford ($37B), Princeton ($34B). Spend rate typically 4-5%/year of trailing 3-year average value. Top endowments routinely beat 60/40 by 1-3% per year.
Largest US: Harvard ($50B), UT System ($45B), Yale ($40B), Stanford ($37B), Princeton ($34B). Spend rate typically 4-5%/year of trailing 3-year average value. Top endowments routinely beat 60/40 by 1-3% per year.