Dan Rasmussen, September 3, 2025, shows the very high allocations to private capital by university endowments and calls it "a huge correlated mistake by the smartest minds in the investing business." As Rasmussen showed elsewhere, the Private Equity part of the market are microcaps struggling to gain a foothold in the small cap space, yet the small caps only constitute about 4 percent of the US market. So the endowments were fighting over a very small share, and they all crowded into it. Genius! This was a mistake in principle, even before Trump starting extorting them for cash.
