Yale Investing Model Fails at Fraught Time for Colleges

Market Intelligence Analysis

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Why This Matters

Yale's investing model has failed, leading to poor returns and endowment taxes, causing universities to dump private equity funds at discounts, affecting the higher education sector.

Market Impact

Market impact analysis based on bearish sentiment with 90% confidence.

Sentiment
Bearish
AI Confidence
90%
Time Horizon
Short Term

Article Context

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Some of the wealthiest, including those that benefited most from the Yale model, are on the hook for hundreds of millions in new endowment taxes from a hostile government. Now, universities are dumping private equity funds at discounts following years of poor returns. Bloomberg's Janet Lorin joined the conversation on "Bloomberg Markets" with Scarlet Fu. She also discussed the story that Yale University is going tuition-free for undergraduates from families with incomes of less than $200,000. (Source: Bloomberg)

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Original article published by Bloomberg on January 27, 2026.
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