Princeton University Endowment Loses 23%

Princeton University’s endowment lost 23.7% for the year ending June 30, according to a letter sent out today by school president Shirley Tilghman. She reported the June 30 endowment value at $12.6 billion, compared to $16.3 billion a year earlier.

Tilghman acknowledges concerns that the school’s emphasis on illiquid alternative investments, but insists that the endowment would be much smaller were Princeton to follow a more “traditional” investment strategy. She adds that the school is undergoing a review of its endowment strategy, and that early indications are that “marginal, not radical, changes may be warranted.”