Elsewhere online
March 05, 2015

With More Cash, Yale Fund May Be Seeking New Investments

Yale University’s endowment is holding nearly $1 billion in cash, a reversal of past policy that saw the fund borrowing money to invest, Bloomberg writes. The cash fund represented 3.5 percent of Yale’s $23.9-billion endowment as of June 30, according to a university investment report, up from 1.6 percent the previous year.

In the run-up to the global credit crisis Yale’s cash allocation reached a low of -3.9 percent, meaning the endowment was borrowing to boost investment returns. Many universities increased their cash reserves after the 2009 crunch took huge bites out of their endowments and forced cuts in academic programs.

A Yale spokesman did not return requests for comment. William Jarvis, managing director of nonprofit investment manager Commonfund, said the university’s cash pile could be the result of bigger payouts from private equity and property investments. “We may have a situation where private equity is giving off cash and they haven’t quite figured out where to put it,” he said. “They’re probably looking at a bunch of things.”