Princeton CIO Andy Golden on Investment Returns

“Princeton aims for a 10 percent annualized return, which is close to the long-term return for the S&P 500, not adjusted for inflation. To get that result, Princeton’s endowment is heavily weighted toward equities, albeit in the context of alternative strategies. It has just 5 percent in fixed income and cash. Such an equity-heavy allocation means assuming higher risk, Mr. [Andy] Golden acknowledged, which he believes is appropriate for Princeton’s overall strong fiscal position.

No one will accuse Mr. Golden of short-termism. Even the 10-year period is too short to measure meaningful results, he said, at least for an institution with an infinite time horizon. By that standard, a decade is a blip.”

For a 270-year-old school, 10 years is indeed a blip.

NYT article on Ivy League Investment Strategy

Episode 13:  Andrew Golden – Beyond the Long Term

Princeton campus

Post by Marcelino Pantoja