For the most recent fiscal year, the endowment’s return was short of the median return of 9.8% among the 44 college and university endowments whose returns have been tracked by Pensions & Investments as of Nov. 11.
Colby College’s endowment report said overall private investments performance was mixed, “as venture capital marks were up slightly, real estate was challenged, and private equity experienced positive performance but did not keep up with public markets.”
The report further said private equity outperformed its benchmark by 6.8 percentage points, with the endowment’s biotechnology exposure a significant contributor, while venture capital outperformed a flat benchmark but only modestly contributed to the endowment’s total return.
Also, the endowment’s long/short hedge funds “delivered equity-like returns” and outperformed its benchmark by 6.3 percentage points.
In public equities, the endowment’s actively managed developed markets equity portfolio was hampered by a lack of exposure to domestic large-cap technology stocks, while the emerging markets equity portfolio lagged due to overweight exposure to Chinese equities.
As of June 30, the actual allocation was 25.1% venture capital, 22% hedge funds, 18.9% developed markets equities, 11% cash and equivalents, 7.9% private equity, 6% real estate, 4.1% emerging markets equities, and 2.5% each natural resources and marketable natural resources.
