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Because they believe they will turn a profit on the investment (in expectation). Next question

by tetrazine 3y ago

malfist 3y ago
Universities are not hedge funds
- zitterbewegung 3y ago
  Yea they are prop funds instead.
- dublinben 3y ago
  The distinction is less clear these days. What is clear is that they're frequently limited partners pitching in millions for venture funds.
- pixl97 3y ago
  No they are an endowment which isn't too much different.
- jgord 3y ago
  Dont the larger universities have vast property holdings and investments they manage ? Smaller universities seem to make a lot on student rental accommodation, at least in places like Australia. Maybe tuition is their side business.
  - tnecniv 3y ago
    They do. They also own lots of intellectual property and will provide some amount of financial support to startups that grow out of the university commonly. At the end of the day, they have endowments and they want to grow those. Specifically, regarding property, at schools I’ve attended they owned real estate in the city around the campus, not just the campus itself. Part of that is investment and part of it was looking to the future for when they run out of space on the current campus to build new facilities and need to grow the campus We don’t think of pension funds as hedge funds either but they also invest heavily to grow the fund.
  - aragilar 3y ago
    Which universities in Australia? Most of the student accommodation is independent (especially ones associated with the sandstone unis, see https://www.abc.net.au/triplej/programs/hack/broderick-review-of-university-sydney-colleges-released/9206796 https://www.abc.net.au/triplej/programs/hack/broderick-revie... for why that's sometimes a problem), and there's no requirement to use student accommodation. International student tuition is a major funding source, but I've never heard of accommodation being much of a money spinner.
- PaywallBuster 3y ago
  Top ones have nearly $50B https://en.wikipedia.org/wiki/List_of_colleges_and_universities_in_the_United_States_by_endowment https://en.wikipedia.org/wiki/List_of_colleges_and_universit...
- bugglebeetle 3y ago
  In the US, they more or less are. The education side business is just for tax benefits.

Because they believe they will turn a profit on the investment (in expectation). Next question

malfist 3y ago

Universities are not hedge funds

zitterbewegung 3y ago
Yea they are prop funds instead.
dublinben 3y ago
The distinction is less clear these days. What is clear is that they're frequently limited partners pitching in millions for venture funds.
pixl97 3y ago
No they are an endowment which isn't too much different.
jgord 3y ago
Dont the larger universities have vast property holdings and investments they manage ? Smaller universities seem to make a lot on student rental accommodation, at least in places like Australia. Maybe tuition is their side business.
- tnecniv 3y ago
  They do. They also own lots of intellectual property and will provide some amount of financial support to startups that grow out of the university commonly. At the end of the day, they have endowments and they want to grow those. Specifically, regarding property, at schools I’ve attended they owned real estate in the city around the campus, not just the campus itself. Part of that is investment and part of it was looking to the future for when they run out of space on the current campus to build new facilities and need to grow the campus We don’t think of pension funds as hedge funds either but they also invest heavily to grow the fund.
- aragilar 3y ago
  Which universities in Australia? Most of the student accommodation is independent (especially ones associated with the sandstone unis, see https://www.abc.net.au/triplej/programs/hack/broderick-review-of-university-sydney-colleges-released/9206796 https://www.abc.net.au/triplej/programs/hack/broderick-revie... for why that's sometimes a problem), and there's no requirement to use student accommodation. International student tuition is a major funding source, but I've never heard of accommodation being much of a money spinner.
PaywallBuster 3y ago
Top ones have nearly $50B https://en.wikipedia.org/wiki/List_of_colleges_and_universities_in_the_United_States_by_endowment https://en.wikipedia.org/wiki/List_of_colleges_and_universit...
bugglebeetle 3y ago
In the US, they more or less are. The education side business is just for tax benefits.