Tuesday, March 29, 2016

Cornell's endowment chief is leaving $6 billion fund, apparently because he wasn't making the endowment enough money?





A.J. Edwards, endowment head of Cornell University, still brought a return on the endowment year after year. It just appears it wasn't enough.

On a $6 billion endowment, Edwards averaged a 10% return every year over a five year period through 2014, but that's slightly below the 10.4% return other universities with an endowment over $1 billion saw.

Remember, this is an endowment. It's essentially money to sit on, which a university will do next to nothing with except to say, "Hey, look how big our endowment is!"

The final straw for Edwards came after the 2015 fiscal season saw only a 3.4% return--again, a positive--which some felt was a stark contrast to Princeton, which had a 12.7% return on their endowment investments.

But it's Cornell after all. It's supposed to pale in comparison to Princeton. Everyone knows this. When you rattle off the eight Ivy League schools, you inevitably stop at after six, pause, and entirely forget Cornell and the University of Pennsylvania are the last two.

Hell, the University of Pennsylvania is just happy if you don't call it Penn State.




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