02/07/2025: Why Don’t You Invest Like Harvard’s Endowment?

Why Don’t You Invest Like Harvard?

Harvard’s $50.7 billion endowment isn’t just big, it’s also one of the best-managed endowments in the world. Overseen by some of the brightest financial minds, Harvard and other Ivy League endowments have outperformed traditional portfolios for decades by focusing on alternative investments, private markets, and consistent cash flow.

How Do Ivy League Endowments Allocate Capital?

Here’s a look at how some of the top university endowments invest:

Harvard

  • Private Equity: 34%
  • Hedge Funds: 22%
  • Real Estate & Natural Resources: 12%
  • Public Equities: 11%
  • Fixed Income & Cash: 5%
  • Other Alternatives (including royalties & credit): 16%
 

Yale

  • Private Equity & Venture Capital: 42%
  • Hedge Funds: 23%
  • Real Assets (Real Estate & Natural Resources): 9%
  • Fixed Income & Cash: 7%
  • Public Equities: 19%
 

Princeton

  • Private Equity: 37%
  • Hedge Funds: 28%
  • Real Estate & Other Alternatives: 12%
  • Public Equities: 14%
  • Fixed Income & Cash: 9%
 

The Takeaway for Investors

These endowments don’t rely on stocks and bonds alone. In fact, all of these Ivy League schools allocate less than 30% of their portfolios to public markets, instead prioritizing alternative assets to generate steady returns regardless of market conditions.

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–Craig