Public and private universities alike have been transformed into financial shell-games for Wall Street’s wealthiest hedge-funds, while tuition and student debt soar, adjuncts are exploited, and the lifetime expected returns on a university degree plummet.
US universities have over $100 billion in endowment funds invested with hedge funds, and pay over $2.5B in fees to hedge fund managers every year. More than half of America’s universities let their endowment board members do business with the university, and sometimes the trustees manage the funds themselves, sitting on both sides of the transaction to hire themselves and pay themselves handsome fees. Sometimes they decline the fees they’re paying themselves, call them “donations” and get buildings named after them for their generosity. [link]