Humphreys on endowments in FT: Few lessons learned from crisis
C-SocPhil director quoted at length today in FT piece on endowments.
BOSTON — The Center for Social Philanthropy’s director Joshua Humphreys was quoted at length today in a story that appeared today in the Financial Times on the endowment model of investing
Humphreys sharply criticized colleges and their investment consultants for taking liquidity for granted and embracing much more risk than they could reasonably be expected to manage. He also highlighted how few lessons seem to have been learned from endowments’ exposure to risky asset classes during the financial crisis.
“The underperformance of Harvard and Yale should serve as a wake-up call for smaller funds and make them see that they’re in a sucker’s game because they can’t access the best funds or managers,” Humphreys says.
The full story can be found online here.
