Baylor outperforms Ivy League in university endowment performance rankings [Video]

Watch out, Ivies, there’s a new endowment performer in town.

Baylor University’s $2 billion endowment — a fraction of those in the Ivy League — generated a 6.4% return for the fiscal year that ended June 30, outperforming the entire conference. Harvard’s endowment, the largest at $50.7 billion, returned 2.9%.

What’s more, Baylor’s annualized return of 10.9% over the past five years outperformed all Ivy League colleges except for Brown University, which recorded a return of 13.3% during that same period, according to the Wall Street Journal. Brown’s endowment in fiscal 2023 was more than three times higher than Baylor’s at $6.6 billion.

The key to Baylor’s endowment success, according to Chief Investment Officer David Morehead, is taking advantage of dislocations in the market.

“It’s really driven by the managers, and then if we, on the edges, are seeing … a dislocation, we could allocate more money into high yield, allocate more …