MIT's finance classes are difficult, but its discussion of the university's endowment fund is not. This February, MIT Investment Management Company (MITIMCo) published an easy-to-read explanation of why it is remarkable. (As with Warren Buffett, MITIMCo excels at humblebragging.) The reason is straightforward: The organization finds superior portfolio managers.
(Note: Today's column relates to one from November 2015: "Three Lessons From Yale's Endowment Fund." Although this article stands on its own, it also serves as a companion piece to its predecessor. As MITMCo President Seth Alexander worked for a decade at Yale before being recruited as MIT's chief, the two universities' funds bear several similarities.)