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Post by sarasota on Dec 17, 2016 22:03:47 GMT -5
From my Fordham President's Report:
Fordham Endowment (2016) = $622Million HC Endowment (2015) = $721.3Million Average Ivy League Endowment = $14.863Billion
"Daniel P. Ricciardi ’06, investment officer at the College of the Holy Cross, was named to Trusted Insight’s list of the “Top 30 University Endowment Investors in Hedge Funds.” Starting out as an analyst in 2008 for the College, Ricciardi became an investment officer and oversaw a $730 million endowment as part of a three person team."
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Post by Pakachoag Phreek on Dec 19, 2016 6:36:07 GMT -5
Being cited as one of the Top 30 university Investors in hedge funds in 2015 was not an accolade to highlight on the resume.
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Post by purplehaze on Feb 10, 2017 13:34:26 GMT -5
from today's nyt - little Houghton College sees an 11% plus annual return by simply investing in index funds for 70 pct of endowment portfolio (30% fixed income). no need for a large staff of highly educated managers it would seem. realize this is only one example but HC like other schools with substantial endowments paid big money last year for sophisticated hedge fund investing (among other instruments) and came away with negative annual returns. Maybe I missed it but what was our return for the year ending june 30th ? www.nytimes.com/2017/02/09/business/college-endowment-investment-returns.html?_r=0
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Post by KY Crusader 75 on Feb 10, 2017 15:38:30 GMT -5
I've probably said this on this board before but I'll risk repeating two things I feel strongly about re:endowments (1) many colleges, most notably Harvard, Yale, et al, have endowments large enough to cover al future expense in perpetuity and should stop raising funds, and (2) it is foolish to pay financial managers the fees they charge when so few can beat index funds. Most places should do as Houghton College has done. I have done that with my own funds--95% of my $$$ is in very low expense index funds. Financial managers, in composite, cannot beat the market due to their fees. I have no interest in real estate, hedge funds, commodities, etc....
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Post by hc87 on Feb 11, 2017 22:47:36 GMT -5
I have 1960s and 1970s baseball cahhds....
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Post by rgs318 on Feb 12, 2017 9:33:18 GMT -5
I have 1960s and 1970s baseball cahhds.... I have a complete 1956 Topps set. If HC had invested in those they would be in good shape, but the prices of card sets starting in the 1980s have plummeted. Investing in goods is really a "crap shoot."
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Post by sader1970 on Feb 12, 2017 18:17:09 GMT -5
Before I get too excited, Rob, is your set in mint condition or did you use them in your bicycle spokes to turn your bike into a motorcycle?
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Post by rgs318 on Feb 12, 2017 19:29:30 GMT -5
Before I get too excited, Rob, is your set in mint condition or did you use them in your bicycle spokes to turn your bike into a motorcycle? Very good (not mint) condition (in plastic sheets). I never put them into the bike spokes...even the standard players were too special for that.
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Post by sarasota on Feb 13, 2017 0:01:04 GMT -5
I have 1 oz American Eagles (bullion). Requires the Patience of Job these days.
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Post by KY Crusader 75 on Feb 27, 2017 8:19:03 GMT -5
I picked this up on Yahoo Finance this morning: Warren Buffett, in his annual letter to stockholders, talking about the folly of choosing active management over passive index investing:
"Warren Buffett's Berkshire Hathaway is out with its annual letter to shareholders.
The letter covers a bunch of topics, touching on everything from stock buybacks to his favorite book of 2016, and also provides some investment advice. "Over the years, I’ve often been asked for investment advice, and in the process of answering I’ve learned a good deal about human behavior," Buffett said in the letter. "My regular recommendation has been a low-cost S&P 500 index fund," he said. "To their credit, my friends who possess only modest means have usually followed my suggestion."
It's worth nothing here that in the same letter Buffett describes Jack Bogle, who transformed investing with the creation of the index fund, as a "hero." Not everyone listens to Buffett's advice, however. "I believe, however, that none of the mega-rich individuals, institutions or pension funds has followed that same advice when I’ve given it to them," he said.
He added (emphasis added): "Instead, these investors politely thank me for my thoughts and depart to listen to the siren song of a high-fee manager or, in the case of many institutions, to seek out another breed of hyper-helper called a consultant. "That professional, however, faces a problem. Can you imagine an investment consultant telling clients, year after year, to keep adding to an index fund replicating the S&P 500? That would be career suicide. Large fees flow to these hyper-helpers, however, if they recommend small managerial shifts every year or so. That advice is often delivered in esoteric gibberish that explains why fashionable investment “styles” or current economic trends make the shift appropriate.
"The wealthy are accustomed to feeling that it is their lot in life to get the best food, schooling, entertainment, housing, plastic surgery, sports ticket, you name it. Their money, they feel, should buy them something superior compared to what the masses receive.
"In many aspects of life, indeed, wealth does command top-grade products or services. For that reason, the financial “elites” – wealthy individuals, pension funds, college endowments and the like – have great trouble meekly signing up for a financial product or service that is available as well to people investing only a few thousand dollars. This reluctance of the rich normally prevails even though the product at issue is –on an expectancy basis – clearly the best choice. My calculation, admittedly very rough, is that the search by the elite for superior investment advice has caused it, in aggregate, to waste more than $100 billion over the past decade. Figure it out: Even a 1% fee on a few trillion dollars adds up. Of course, not every investor who put money in hedge funds ten years ago lagged S&P returns. But I believe my calculation of the aggregate shortfall is conservative.
"Much of the financial damage befell pension funds for public employees. Many of these funds are woefully underfunded, in part because they have suffered a double whammy: poor investment performance accompanied by huge fees. The resulting shortfalls in their assets will for decades have to be made up by local taxpayers.'
"Human behavior won’t change. Wealthy individuals, pension funds, endowments and the like will continue to feel they deserve something “extra” in investment advice. Those advisors who cleverly play to this expectation will get very rich. This year the magic potion may be hedge funds, next year something else. The likely result from this parade of promises is predicted in an adage: “When a person with money meets a person with experience, the one with experience ends up with the money and the one with money leaves with experience.”
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Post by matunuck on Aug 8, 2017 8:23:21 GMT -5
For the fiscal year ending June 30, HC will report about 755 million in endowment, a 12 percent return on the year.
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Post by hchoops on Aug 8, 2017 8:25:57 GMT -5
For the fiscal year ending June 30, HC will report about 755 million in endowment, a 12 percent return on the year. Thanks how does this compare to peer schools ?
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Post by matunuck on Aug 8, 2017 8:28:19 GMT -5
Good question. Not sure. Endowment per student for our peer schools would also be interesting to know. I'll let PP handle that one.
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Post by sarasota on Aug 8, 2017 9:05:48 GMT -5
I believe our endowment per student is relatively quite high due to our small number of students. Also, considering that the market is sitting on a huge equity bubble, I sincerely hope HC's endowment has significantly reallocated away from equities--though I doubt it.
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Post by Pakachoag Phreek on Aug 8, 2017 10:55:27 GMT -5
Endowment per student is safely in second place among all Catholic colleges and universities.
Total endowment lags behind our PL peers, Lafayette, Bucknell, and Colgate. By peers I mean, non-universities. Endowment per student was probably close to Bucknell last year, behind Colgate and Lafayette. Endowment per student is calculated on total enrollment, not undergraduate enrollment.
As for 12 percent growth, we will have to wait and see.
According to Bloomberg, BUT this is measuring return on investment. The final endowment number is ROI value + contributions value - distribution for operations value. We have to wait for the auditor's financial report.
Illustratively, endowment beginning of year was $1 billion, ROI was $100 million or 10 percent. Contributions were $25 million. distribution was $45 million. Endowment value at end of year would be $1,080 million, or a gain of eight percent.
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Post by matunuck on Aug 8, 2017 11:00:00 GMT -5
PP, do you recall how much of our ongoing $400 million fundraising campaign is earmarked for our endowment?
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Post by sarasota on Aug 8, 2017 13:16:13 GMT -5
I would think our balance sheet Liabilities increased reflecting the cost to finance the school's part of the facilities improvements. Yes?
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Post by Pakachoag Phreek on Aug 8, 2017 15:20:31 GMT -5
PP, do you recall how much of our ongoing $400 million fundraising campaign is earmarked for our endowment? Maybe half. The capital program includes Luth, Joyce, and Prior. And perhaps some part of the replacement field house. That's $200 million plus. ______________________________ Capital gifts such as those by the Luths are carried as net assets on the balance sheet, and not included in the endowment. If however donor x gave $15 million for the performing arts center, and $10 million for financial aid for theater arts majors, the $10 million would be counted as a contribution to the endowment.
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Post by hchoops on Aug 8, 2017 15:42:36 GMT -5
PP, do you recall how much of our ongoing $400 million fundraising campaign is earmarked for our endowment? Maybe half. The capital program includes Luth, Joyce, and Prior. And perhaps some part of the replacement field house. That's $200 million plus. ______________________________ Capital gifts such as those by the Luths are carried as net assets on the balance sheet, and not included in the endowment. If however donor x gave $15 million for the performing arts center, and $10 million for financial aid for theater arts majors, the $10 million would be counted as a contribution to the endowment. PP which one are you considering ?
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Post by Pakachoag Phreek on Aug 8, 2017 16:04:59 GMT -5
Maybe half. The capital program includes Luth, Joyce, and Prior. And perhaps some part of the replacement field house. That's $200 million plus. ______________________________ Capital gifts such as those by the Luths are carried as net assets on the balance sheet, and not included in the endowment. If however donor x gave $15 million for the performing arts center, and $10 million for financial aid for theater arts majors, the $10 million would be counted as a contribution to the endowment. PP which one are you considering ? None of the above. I'm going the Duke route, where they have financially endowed the athletes. So in the future, expect to hear introductions of ______ ______, the Pakachoag Phreek Men's Ice Hockey Goalie; _________ ________ the Pakachoag Phreek Point Guard, _________ ________ the Pakachoag Phreek Quarterback, and so on. Fingers crossed that I find enough money that I can also financially endow the team managers, as Duke does. Perhaps, the team managers might be The Crossports Team Managers. Just a thought..
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Post by sarasota on Aug 8, 2017 21:45:16 GMT -5
I have acquired the naming rights to one of the thrones in the visitors locker room.
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Post by hc6774 on Aug 9, 2017 8:06:17 GMT -5
re the Duke route... iirc at a Pres Council dinner 20 years ago, it was announced that a 70's alum endowed 2 bball schollies; not uncommon in Ivies that coaching positions are endowed.
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Post by Sader Fan on Aug 14, 2017 18:27:27 GMT -5
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Post by Pakachoag Phreek on Aug 15, 2017 18:19:31 GMT -5
The Crain's article with its quotes from HC clarifies the HC endowment situation. Value of the HC endowment on July 1 2016 was $681 million. Value on June 30, 2017 was $755 million. An investment return of 12 percent (HC's statement) would result in a gain of $82 million, and theoretically increase the endowment value to $763 million. However, the $8 million difference between $755 million and $763 million is because distributions (from the endowment) for operations exceeded the contributions (new gifts to the endowment) amount, and a portion of the investment gains were used in the distribution.
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Post by KY Crusader 75 on Aug 15, 2017 19:09:08 GMT -5
Good to see that the endowment is growing and that we are using proceeds to enhance the HC experience for students
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