The Massachusetts Institute of Technology, like other big colleges, has a large weighting in venture capital and other alternative investments.
Massachusetts Institute of Technology reported weak investment returns, as its holdings in venture capital suffered apparent losses.
They have followed the so-called Yale model championed by the late David Swensen, the former Yale endowment chief who died in 2021. Yale has had less than 5% of its endowment in listed domestic equities. The Wilshire Trust Universe Comparison Service, which broadly tracks institutional portfolios, showed an 8.1% return in the year ended in June.
Endowment portfolios look nothing like those of individual investors and the 60/40 or 70/30 mix of stocks and bonds favored by many financial advisors.