University endowments are some of the biggest investment portfolios in the world. Due to their sheer size, universities don’t let just anyone manage their investments, instead they hire seasoned professionals. Yale’s endowment fund is managed by David Swensen – the most influential investor in the world – and for a good reason, it tops $30 billion. This massive portfolio has just dipped its toe into the crypto market. Due to the fact David Swensen manages the fund, we could very well see other Ivy League universities follow suit.
What are Endowment Funds?
Endowment funds are the pools of money universities generate from donations from wealthy individuals in order to get their children bumped higher up the entry list. These funds are then used for the day-to-day running of the university, new equipment – such as sports grounds, lab equipment, and supercomputers – the hiring or new professions, and funding projects. For most universities, their investment managers can play with up to five percent of the total endowment fund in order to provide additional income and help cover expenditure.
Jumping into Crypto
David Swensen has selected the Paradigm Crypto Hedge Fund in order to boost the university’s returns. Last year, Yale’s endowment fund grew by 12.5% thanks to savvy investing from Swinson and his team, and he is clearly betting big on crypto in a bid to maximize gains. Since Swinson took over the role as investment manager of Yale’s endowment fund, he has taken it from $1 billion to a staggering $30 billion (4,567,224.98 BTC) – what can’t you buy for $30 billion?
Yale Leading the Way
The fact that Yale – led by David Swinson – has invested in crypto, we could see a new wave of crypto investors emerge. As the most influential investor in the world, it’s almost guaranteed that hordes of professional and amateur investors will copy Swinson and enter crypto markets by whatever means are available. Fortunately for American investors, they can now gain access to Bitcoin with First Block Capital’s Bitcoin Mutual Fund.
This is really big news. David Swensen the most influential investor in the world. By making this investment he just said the bitcoin is a store of value. He’s the alpha bull of the herd. Congrats @_charlienoyes @FEhrsam https://t.co/uUsz4MOvwI
— Michael Novogratz (@novogratz) October 5, 2018
When it comes to investing in crypto, all it takes is one big name to dive in and others will surely follow. Yale’s incredible financial power means that the crypto markets should see a nice boost. Alternatively, if it’s feeling generous Yale could buy 123,438 classic Mustangs for the students – just an idea.
