Endowment Falls $1.5 Billion Past Year - Printable Version
+- The CardBoard (https://thecardboard.org/board)
+-- Forum: C-House! (https://thecardboard.org/board/forum-4.html)
+--- Forum: The CardBoard (https://thecardboard.org/board/forum-5.html)
+--- Thread: Endowment Falls $1.5 Billion Past Year (/thread-23582.html)
+- The CardBoard (https://thecardboard.org/board)
+-- Forum: C-House! (https://thecardboard.org/board/forum-4.html)
+--- Forum: The CardBoard (https://thecardboard.org/board/forum-5.html)
+--- Thread: Endowment Falls $1.5 Billion Past Year (/thread-23582.html)
Endowment Falls $1.5 Billion Past Year - Softball Fan - 10-18-2022
https://news.stanford.edu/2022/10/18/stanford-university-reports-return-investment-portfolio-value-endowment/
"Stanford University today announced a -4.2% investment return in its Merged Pool... for the year ending June 30, 2022."
"The endowment includes more than 7,700 funds established by philanthropic donors over the years and designated for specific purposes."
Almost all large donations in the endowment are defined for a specific purpose. If the football program is eliminated, varsity sports will have to depend on future donations specific to a sport or the athletic department. Those funds would be parked in the endowment and subject to the ups and downs of investing. While I'm ok with the football program being eliminated if it comes to that, all other sports will experience financial hardships.
By way of comparison the Harvard endowment lost $2.3 billion this past year.
https://www.insightintodiversity.com/harvard-endowment-loses-money-for-the-first-time-since-2016/
RE: OT: Endowment Falls $1.5 Billion Past Year - dabigv13 - 10-18-2022
Made 12.1 billion in 2021 though, so I doubt any cuts anywhere will be necessary.
https://news.stanford.edu/2021/10/26/stanford-releases-annual-financial-results-investment-return-endowment-3/
RE: Endowment Falls $1.5 Billion Past Year - Section QQ - 10-18-2022
(10-18-2022, 04:10 PM)paloalto Wrote: "Stanford University today announced a -4.2% investment return in its Merged Pool... for the year ending June 30, 2022."
Only -4.2%? I wish they were managing my 401k.... :-)
TreesAndBirds - TreesAndBirds - 10-18-2022
Just wondering if anyone knows….when reference is made to the size of Stanford’s endowment, does it include land owned by Stanford? Its estimated that Stanford held real estate valued at at least $20B in 2018 (see below article). I dont know if there is debt on any of the real estate, which would of course affect the “net value”. And if RE is included in the endowment value, it would be interesting to know how its valued…..cost, FMV, other?
https://extras.mercurynews.com/whoowns/stanford.html
RE: Endowment Falls $1.5 Billion Past Year - dabigv13 - 10-18-2022
From the link I posted above-
Quote:The value of the university’s endowment, which includes approximately 75 percent of the Merged Pool as well as other assets such as real estate, was $37.8 billion on Aug. 31, 2021, the end of its fiscal year.
RE: Endowment Falls $1.5 Billion Past Year - akiddoc - 10-18-2022
Harvard down only 1.8%. To 51 billion.
RE: Endowment Falls $1.5 Billion Past Year - BostonCard - 10-18-2022
I wonder if there are unrealized losses from illiquid assets that make the losses look less bad than they would be if they had to mark to market.
BC
RE: Endowment Falls $1.5 Billion Past Year - JeffInCorvallis - 10-18-2022
The land of the main campus was gifted to the University by Leland and Jane. By the founding documents none of it can ever be sold, so while Stanford may be sitting on some of the most valuable real estate on planet Earth, it can't profit directly from the sale. Portions of the land, like the shopping center and the Stanford Industrial Park, do generate significant income. Stanford also owns real estate outside the main campus such as the Redwood City campus.
I would guess that real estate is on the books as an asset for the University but not as a part of the endowment. In 2020 they reported that real estate investments made up 8% of the endowment, and it's an asset class they use for diversification, investing in commercial and residential real estate in various places.
RE: Endowment Falls $1.5 Billion Past Year - PVTree - 10-18-2022
They also own Notre Dame... The campus in Belmont and on the field in South Bend. :)
RE: Endowment Falls $1.5 Billion Past Year - Mick - 10-18-2022
(10-18-2022, 08:43 PM)BostonCard Wrote: I wonder if there are unrealized losses from illiquid assets that make the losses look less bad than they would be if they had to mark to market.
BC
There's probably a report, deep in the bowels of Stanford Finance, that confirms such a thing.
RE: Endowment Falls $1.5 Billion Past Year - BostonCard - 10-18-2022
I mean, it’s fine. Stanford’s time horizon is so long that they will never have to sell illiquid assets.
BC
RE: Endowment Falls $1.5 Billion Past Year - chrisk - 10-19-2022
(10-18-2022, 09:54 PM)BostonCard Wrote: I mean, it’s fine. Stanford’s time horizon is so long that they will never have to sell illiquid assets.
BC
In the annual reports, they are supposed to value illiquid assets at current value. As illiquid assets, you may not be able to sell them today at that price, so there is subjectivity involved.
Endowments have head problems with illiquid assets, particularly in the Great Recession. Stanford borrowed money to meet current requiements.
Harvard had big problems with illiquid assets in the Great Recession and took massive unrealized losses.
Did Harvard Sell at the Bottom?
https://www.forbes.com/2009/10/24/harvard-university-endowment-business-wall-street-harvard.html?sh=518a714a6c4a