Posts by Highland
September 2025
Summary September brought the first U.S. Fed interest rate cut of the year, an outcome that seemed unlikely when 2025 began. Global stocks continued to climb through the end of the third quarter. Against mixed economic data and a looming government shutdown, investors retained their risk appetites with major asset classes finishing higher across the…
Read MoreAugust 2025
Summary Through the final days of summer, it was smooth sailing as markets cruised ahead. Major asset classes posted strong positive gains into the Labor Day holiday. Small caps shined, and non-U.S. stocks pushed past 20% year-to-date returns by August’s close. Blue chip U.S. equities stumbled late in the month, but still managed respectable gains,…
Read MoreJuly 2025
Summary Domestic markets climbed alongside the summer temperatures in July, while non-U.S. stocks saw their first pullback of the year. U.S. trade policy offered a few glimpses of clarity on tariffs with important partners in Japan and the European Union, in moves that were cheered by U.S. markets, but met with mixed reviews internationally. The…
Read MoreThe E&F Advocate: Now a Law – The One Big Beautiful Bill Implications for Endowments & Foundations
The recently passed “One Big Beautiful Bill” (OBBB) represents the most consequential legislative package for U.S. endowments and foundations in over a decade. While sweeping in scope, its most significant implications for our community fall into three categories: tax reform, climate and infrastructure capital, and university governance provisions. Tax Code Overhaul: Pressures on Investment…
Read MoreJune 2025
Summary Both stocks and bonds rallied in June, shrugging off geopolitical tensions and modest economic data. Emerging markets led the way, buoyed by continued dollar weakening, trailed closely by U.S. equities. Duration provided a tailwind for the month as rates fell across the yield curve and credit spreads held their levels. Equities U.S. stocks rose…
Read MoreMay 2025
Summary U.S. equities recovered nicely from the turmoil of April, and international and emerging stocks continued to shine in 2025. Bond returns were negative as Treasury rates crept higher in May. Credit spreads retraced much of April’s widening to return near historical tightening. The Federal Reserve maintained the status quo on policy interest rates in…
Read MoreThe E&F Advocate: Impact of H.R.1 OBBBA on Endowments and Foundations
H.R.1 OBBBA will cause significant changes to endowment and foundation taxes in terms of a transition from flat to tiered tax rates, with various potential implications and impacts for universities and foundations. University Endowments The current flat 1.4% excise tax on net investment income for private colleges and universities would shift to a tiered…
Read MoreThe E&F Advocate: Endowment Turbulence – A Crisis at the Crosswinds of Politics, Policy, and Portfolio Strategy
photo credit: ideogram.ai Back in calmer times, larger endowments operated with seeming invisibility—quietly compounding capital over decades, shielded from public glare. Fast forward to today, these capital pools sit squarely in the eye of a brewing political and financial storm. Harvard, Yale, Princeton, and Columbia—once synonymous with strategic patience and long-termism—are now recalibrating rapidly. The…
Read MoreApril 2025
Summary April 2025 tested global markets in ways that have not been felt since March of 2020. The stress kicked off on April 2 (Liberation Day) with President Trump’s global tariff announcement. His stated plan was to tax imports from every country in the world at a minimum of 10%, with some trading partners facing rates…
Read MoreThe E&F Advocate: Key Takeaways on Proposed Endowment Tax Changes
photo credit: ideogram.ai The proposed endowment tax changes aim to increase the current 1.4% excise tax on net investment income of certain private colleges and universities to rates as high as 21% or more. Additionally, there are proposals to broaden the tax’s applicability by lowering the endowment assets per student threshold from $500,000 to…
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