Name: CMC Student Investment Fund
Assets Under Management: $1.028 Billion (Source: Claremont McKenna College on 6/30/2014)
Annual Report: Claremont McKenna College 2013-2014 Annual Financial Report
Portfolio Insights: “The fiscal year that began on July 1, 2013, also marked the beginning of a new era of leadership for Claremont McKenna College (CMC). The College officially welcomed Hiram Chodosh as the College’s fifth president since its founding in 1946.
The investment portfolio is the largest asset of the College, and is closely monitored by the Board’s Investment Committee. The return on CMC’s endowment for the year was 19.9%, net of fees. CMC’s one-year return is tracking near the top of the Cambridge Associates database of preliminary returns for college and university investment pools and is in the top decile of the same database over the trailing three-, five-, and ten-year periods.” (Source)
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Top Claremont McKenna College Endowment Fund Headlines:
1) Claremont McKenna College recently raised more than $635 million in a fund-raising campaign that showed no real negative effects from an SAT scandal that hit the college in January 2012. In 2008, officials said, the campaign was started with the goal of raising $600 million. When it ended on June 30, the school had raised $635.2 million. A news release announcing the total came out on Aug. 7. Ernie Iseminger, vice president of development and external affairs for Claremont McKenna College, said former president Pamela Gann and the board of trustees chair Harry T. McMahon led the effort with the current board of trustees. (Source)
2) August 06, 2013 Claremont McKenna College on Tuesday announced that it has raised more than $635 million in a fundraising campaign believed to be among the largest for an American liberal arts college. The public campaign was launched in 2008 with a goal of $600 million to support endowed faculty positions, student scholarships, new facilities and building renovations at the small, private college in Claremont, about 35 miles east of downtown Los Angeles. The effort was boosted by gifts from several billionaire alumni, including $200 million from philanthropist Robert Day, $75 million from financier Henry Kravis and $50 million from George R. Roberts, a cousin of Kravis. Kravis and Roberts were among the founders of Kohlberg Kravis Roberts & Co., a financial firm that was involved in leveraged buyouts of companies. (Source)
3) Claremont McKenna College, a young private liberal arts school founded in 1946, is part of the Claremont University Consortium that also includes Pomona College, Scripps College, Pitzer College, Harvey Mudd College, and two graduate schools. It is ranked #18 on the Veritas Prep Elite College Rankings. Claremont College takes a pragmatic pre-professional approach to academics, preparing students for global leadership roles. The most popular majors by student enrollment at Claremont College are economics, government, and psychology; although the college offers thirty-three majors, it specializes in economics and government. (Source)
4) Claremont McKenna Vice President and Chief Investment Officer Jim Floyd, who was also present at the meeting, addressed whether it is feasible to divest by noting that the College maintains a number of different funds which are managed externally. He said that CMC tries to “identify the best managers” to get the highest returns on its investments, and that limiting what the College is allowed to invest in could “hamstring” their ability to make money for the College. Responding to a question from the students, Floyd estimated that about 15% of the College’s investments are in the energy industry, but cautioned that the figure was a rough estimate and that it is hard to pin down how much of that investment is in the fossil fuel industry. (Source)
5) Jan 11, 1995 – In an unusual investment move, Claremont McKenna College, a tiny, private liberal arts school near Pomona, has purchased a $5-million stake in Irvine Co., Orange County’s largest landowner. Earlier this year in a confidential prospectus sent to potential investors, Howard P. Marguleas, an Irvine Co. director since 1977, said he was selling his 5.05% minority stake in the privately held company–shares for which he was seeking about $94 million–to raise money he needed to meet other obligations.
Marguleas is former chairman of Sun World International, a Bakersfield-based agricultural giant that filed for bankruptcy protection in October. To raise funds quickly to help resolve related financial problems, Marguleas is offering to sell his Irvine Co. stock at 19% below its estimated value of $112 million, or $617,000 a share. (Source)