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Stock dive – High-risk strategy

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After soaring soared in the 1990s, returns on the endowment at the University of Minnesota plummeted in 2000, the St. Paul Pioneer-Press reported May 11.

Investing in venture capital and large capital growth stocks, both U.S. and international, the endowment posted average returns of 16.2 percent a year for the past decade to reach $742.8 million, the Pioneer-Press said.

That put it in the top 5 percent of 50 peer institutions, George Pendergast of Cambridge Associates, the school’s consultants, told the finance and operations committee of the board of regents.

But in 2000, the endowment lost 2.8 percent, putting it in the bottom 5 percent among its peers.

Still, the endowment outperformed the Standard and Poors 500, which earned an average of 17.5 percent a year over 10 years and lost 9.1 percent last year, the newspaper said.

For full story, go to the St. Paul Pioneer Press.

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