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BPard

NYT Op-Ed: Stop Colleges From Hoarding Cash

http://nyti.ms/1WDObwH

Quote:
WHO do you think received more cash from Yale’s endowment last year: Yale students, or the private equity fund managers hired to invest the university’s money?
Answer for Yale is obvious. What is the answer for Lafayette?

What would be the impact on Lafayette of the author's proposal to amend the Higher Education Act on it's re-authorization to require an 8% annual spend for college/university endowments greater than $100 million?
RichH

Have no idea but a fascinating article . Troubling to me that endowments at some schools benefit managers more than students.Begs the question,why are they tax exempt as educational funds when the main beneficiaries are hedge fund managers.
BPard

Well in trying to answer my own question, I learned the following from the 2014 statements:

    The Board reduced our annual spend from the Scholarship Pool from 6% to 5%.

    About 65% of operating expenses are what I would consider "for students" (Instruction, Academic Support, Student Services)

    From 2013-2014 we fully divested from institutional fixed income mutual funds (from $49 million to zero)

    We spent $31 million from endowment, which is 4.1%

    Several revenue bonds are for athletics facilities (APK Field House cited as part of an $18.2 million bond and "football facilities"/Track @ Metzgar for a $15.1 million bond


I couldn't find a reliable source for payments to the fund managers or the expenses/fees they charge.
Lafalum

The manager E wayne Norbert was the overall manager and the fees are located in a subsidiary, Hollow Brook Assc, I believe. Plus there are fees to hedge fund managers which are indeed hard to find. So until recently we had a manager of managers and fees to managers of hedge funds.
We have recently hired a chief investment officer, Norbett I believe is no longer in the picture to my knowledge.
bethlehempard

Let's ponder the last few days in the market (probably inconsequential in the long run but difficult) and the last crisis.
I think any broad-brush approach that would penalize prudent spending because of a few abuses would not only be unwise but won't ever become required.
This has been discussed before. The next time it gains attention might be a good time to sell.

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