Endowment Sweepstakes: How Tiny Houghton College Beat Harvard

This article from the New York Times entitled “Endowment Sweepstakes: How Tiny Houghton College Beat Harvard” describes how Houghton College, a liberal arts institution in the Genesee Valley in western New York, outperformed many of the larger, more notable endowments across the country, such as Harvard and Yale. Their $46.4 million endowment emerged in the top quartile of all endowments earning 11.85 percent return for the 2016 fiscal year according to the National Association of College and University Business officers, known as Nacubo. They generated these returns by moving out of hedge funds and alternatives and into amore traditional 70/30 allocation mix of low cost Vanguard index funds and mutual funds. Houston Trust Company believes that a combination of both actively managed individual equity securities and passively managed (index) exposure is a prudent approach towards investing that works over time.
Endowment Sweepstakes: How Tiny Houghton College Beat Harvard