The Massachusetts Institute of Technology is beating Yale University's endowment returns under the guidance of Seth Alexander, a Yale graduate who formerly helped manage his alma mater's investments, The Wall Street Journal writes.
The MIT fund grew by 13.2 percent in the year ending June 30, compared to Yale's 11.5 percent and 5.8 percent for the Harvard University endowment. It is also besting those universities' long-term results, with annualized returns of 10.5 percent over the past decade against 10 percent for Yale and 7.6 percent at Harvard, according to figures from Charles A. Skorina & Co., an endowment recruiting firm.
MIT's endowment has grown from $8.4 billion to $13.5 billion since Mr. Alexander came on board in 2006. He has adopted elements of his former boss David Swensen's strategy at Yale, emphasizing hedge funds and private equity over stocks and bonds and hiring managers who are generalists rather than specialists in a particular industry.