[Softball Fan]

https://news.stanford.edu/2022/10/18/sta...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/har...ince-2016/

[Softball Fan]

https://news.stanford.edu/2022/10/18/sta...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/har...ince-2016/

[dabigv13]

Made 12.1 billion in 2021 though, so I doubt any cuts anywhere will be necessary.

https://news.stanford.edu/2021/10/26/sta...dowment-3/

[dabigv13]

Made 12.1 billion in 2021 though, so I doubt any cuts anywhere will be necessary.

https://news.stanford.edu/2021/10/26/sta...dowment-3/

[Section QQ]

"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.... :-)

[Section QQ]

"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]

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

[TreesAndBirds]

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

[dabigv13]

From the link I posted above-

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.

[dabigv13]

From the link I posted above-

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.

[akiddoc]

Harvard down only 1.8%. To 51 billion.

[akiddoc]

Harvard down only 1.8%. To 51 billion.

[BostonCard]

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

[BostonCard]

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

[JeffInCorvallis]

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.

[JeffInCorvallis]

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.

[PVTree]

They also own Notre Dame... The campus in Belmont and on the field in South Bend. :)

[PVTree]

They also own Notre Dame... The campus in Belmont and on the field in South Bend. :)

[Mick]

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.

[Mick]

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.

[BostonCard]

I mean, it’s fine.  Stanford’s time horizon is so long that they will never have to sell illiquid assets.

BC

[BostonCard]

I mean, it’s fine.  Stanford’s time horizon is so long that they will never have to sell illiquid assets.

BC

[chrisk]

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/harvar...8a714a6c4a

[chrisk]

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/harvar...8a714a6c4a