Business & Tech

Stanford endowment joins long list of college funds doing poorly

The Stanford University endowment posted a 0.4 percent loss on its investments for fiscal 2016, underperforming some large rivals but doing better than Harvard University’s 2.0 percent loss.

Last week, Yale University said it had a 3.4 percent gain for the year ended June 30.

Advertisement

The median return for foundations and endowments tracked by the Wilshire Trust Universe Comparison Service was negative 0.3 percent.

Harvard is the the largest university endowment, with $35.7 billion in assets. Harvard president Drew Faust said the “disappointing” investment return would “constrain our budgets,’’ according to the Harvard Crimson.

Get Talking Points in your inbox:
An afternoon recap of the day’s most important business news, delivered weekdays.
Thank you for signing up! Sign up for more newsletters here

Harvard Management Co. is seeking a new chief executive after the departure this summer of Stephen Blyth after a short, year-and-a-half stint. The endowment manager is under pressure to boost performance; Blyth had said it needed to produce at least a 5 percent return annually to meet its obligations to Harvard’s annual operating budget.

Despite last year’s loss, Stanford’s endowment increased in value by 0.8 percent to $22.4 billion, the school said, thanks to fundraising and gifts.

Beth Healy can be reached at beth.healy@globe.com. Follow her on Twitter @HealyBeth.
Loading comments...
Real journalists. Real journalism. Subscribe to The Boston Globe today.