By Donald Gilpin
Princeton University’s endowment fund has reported a return of 3.9 percent and a total value of $34.1 billion for the fiscal year ending on June 30, 2024. The University has recorded an average annual return of 9.2 percent over the past 10 years, but the 2024 gain was the smallest among the eight Ivy League universities and follows Princeton’s losses of 1.5 percent and 1.7 percent in the two previous years.
Returns for the 2024 fiscal year at other Ivy League institutions ranged from 11.5 percent at Columbia to 5.7 percent at Yale, with Princeton’s underperformance for the year apparently due to large investments in private equity and venture capital at a time when publicly traded stocks, particularly technology stocks and the S&P 500 index, have outperformed most experts’ predictions.
PRINCO, the Princeton University Investment Company, emphasizes a “long horizon” investment strategy, focusing on many decades rather than a single year. The endowment’s investments returned 46.9 percent in 2021 and have averaged 9.9 percent over the past 20 years. more