$29 Billion Yale University Endowment Invests in Two Crypto Funds
Yale University’s $29.4 billion endowment fund was the top-performing endowment over the past fiscal year, and now it has made a new bet on the future of digital assets.
According to a recent report by CNBC, David Swensen, who’s known as Yale’s ‘Warren Buffett,’ has invested in Andreessen Horowitz’s $300 million dedicated crypto fund. While Swensen’s investment in crypto is likely a small fraction of Yale’s assets, it does indicate a shift in institutional risk appetite for the emerging digital asset category.
Andreessen Horowitz notably launched its dedicated fund earlier this year and has since made a number of investments, including more traditional equity financing and direct token purchases. They most recently invested $15 million in MakerDAO (MKR), the creator of stablecoin Dai (DAI).
This report came the same day as a Bloomberg report that cites an individual familiar with the matter revealed that the Yale endowment has invested an undisclosed amount in the $400 million Paradigm fund, which was recently launched by Coinbase co-founder Fred Ehrsam and former Sequoia Capital partner Matt Huang.
Yale is no stranger to higher-risk investments, as 60% of Yale’s assets in fiscal 2019 are planned to be distributed across venture capital, hedge funds and leveraged buyouts.
The strategy appears to be paying off, as Yale’s endowment grew 12.3% in the most recent fiscal year, beating out Harvard’s 10% and Stanford’s 11.3% growth. As a comparison, a typical 60-40 portfolio of Standard & Poor’s 500 stock and aggregate bond index equities would have seen a roughly 8.4% return over that same period.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.