The final results are in: Yale’s endowment lost 24.6 percent of its value between July 1, 2008, and June 30.
The endowment’s value plummeted to $16.3 billion, from $22.9 billion, in that period, the University announced Tuesday. But Yale said the return “falls in the range of expected outcomes” in a year when equity markets across the globe fell by some 30 percent.
“If a portfolio produces returns of 41 percent (as Yale’s did in fiscal 2000) and 28 percent (as Yale’s did in fiscal 2007), then there exists the possibility that the portfolio might produce a substantial double-digit decline,” the University said in a statement.
In the aggregate, Yale’s marketable assets declined by just 13.1 percent. But private equity holdings lost 24.3 percent of their value, and real assets, the largest part of the University’s endowment, posted a decline of 33.9 percent.