My tiny alma mater, Harvard, and index funds

[El Gringo]

So my tiny alma mater made it into the New York Times today for beating Harvard in terms of endowment returns....due to changing to index funds!

https://www.nytimes.com/2017/02/09/business/college-endowment-investment-returns.html?smid=tw-nytimes&smtyp=cur

[Retire-Canada]

Great story.

[slugline]

Nice job, Houghton!

Did anyone else cringe while reading about “the whole two-and-20 model” of management fees? Eek!

[Dicey]

So Houghton went Mustachian with excellent results. Hmmm, where have I heard that story before?

What a great story. Thanks for the link!

[Indexer]

If an investment strategy existed, that was incredibly simple and allowed you to outperform your peers 90% of the time, why wouldn't you do it?


Apparently an ivy league education, that is why.


I saw a similar story where someone compared the returns of all endowments to a simple 60/40 portfolio with Vanguard index funds. Over 10 years the index approach outperformed over 90% of endowments.