How universities became giant piggy banks for hedge-fund billionaires
While the increasingly popular quip that “colleges are just real-estate hedge funds with classes attached” may inspire eye rolls, recent moves are making the joke cut deeper… Rather than help ease student’s cost burdens, the growing hedge-fund-like nature of endowments has actually made affordability worse. According to a 2018 case study on the financialization of higher education from the Roosevelt Institute, a progressive think tank, complex financial investments called interest-rate swaps had cost a sample of 19 schools $2.7 billion — enough to cover the total cost of college for 108,000 students.
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by Catherine Liu, Business Insider.