Key Takeaways
- • Abilene Christian University's 10-year return reached 13.6% through June 2026, versus a 9.1% benchmark of 70% global stocks and 30% bonds, according to data provided by the school.
- • ACU's 20-year average annual return of 10.9% through June 2026 compares with a 6.8% benchmark, per the school's data cited by CNBC.
- • Yale's $44.1 billion endowment returned 9.4% over the decade through June 2025, the most recent period Yale has disclosed, and Yale has not yet published its FY 2026 numbers.
- • ACU's CIO Joe Lee attributes the outperformance to small, sound early decisions compounding over time, an outsourced-style governance structure under ACIMCO, and the ability to act on opportunities too small for large endowments.
- • Critics note the comparison mismatches time periods, and an industry database shows the top-5% 10-year return bar rose to about 10.5% as of June 2026, while Sauls estimates larger endowments generally outperform by 1 to 1.5 percentage points a year over time.
Summary
Abilene Christian University (ACU), a private Christian university in Abilene, Texas, has posted investment returns that compare favorably with Ivy League endowments. According to data provided by the school and reported by CNBC, ACU's 10-year annualized return reached 13.6% through June 2026, against a 9.1% benchmark of 70% global stocks and 30% bonds. Its 20-year average of 10.9% also sits well above the 6.8% benchmark. The endowment recently surpassed $1 billion in assets, valued at a little over $1 billion as of June 30, 2026.
By comparison, Yale University's $44.1 billion endowment returned 9.4% over the decade through June 2025, its most recent disclosure. Yale has not yet published FY 2026 figures, and the NACUBO-Commonfund Study of Endowments, the most-cited annual study, is scheduled for publication in February 2027.
Joe Lee, president and chief investment officer of ACIMCO (Abilene Christian Investment Management Company), a university-controlled investment company, said the school's results reflect many small, sound decisions made years ago that have compounded over time. He described the strategy as equity-oriented, with long time horizons, good managers and diversification. Lee said a smaller endowment can be an advantage, noting that ACIMCO can evaluate a $100 million fund and find it material, while larger endowments often set minimum fund sizes. A little more than half of ACU's endowment is in private investments and a little less than half in public markets, and Lee said private and public equity returned similar amounts in fiscal 2026. The endowment also carries donor-imposed restrictions and a mission to draw on it for current and future students.
Other small schools have also outperformed. Reed College, with an $885 million endowment, reported 7.5%, 12.4% and 11.6% returns over three fiscal years through June 2025, versus Yale's 1.8%, 5.7% and 11.1%. Colby College reported an 18.2% return for the year ended June 30, 2026, and a 10.5% 10-year annualized return net of fees, on a $1.4 billion endowment. Colby CIO Deborah Shufrin credited long-standing relationships with premier private fund managers.
Not all observers accept the edge as durable. Anna Dunn Tabke, founder of Leita Advisory, cautioned that comparisons may be distorted because some schools report through June 2026 while Yale's 10-year figure ends in June 2025. Using Confluence data across 259 small and mid-sized endowments, she said the top-5% 10-year threshold rose from about 8.45% to roughly 10.5% in one year, and that results were unusually dispersed. She also noted that private equity has returned little for about three years, and that some Yale-style investors benefited from holdings in SpaceX after its June listing. R. Keith Sauls, CFA, of Farther Finance, said the recent edge is real but largely reflects timing and the fact that large endowments' venture and private equity holdings are revalued infrequently during strong public markets. He estimated that larger endowments generally outperform by one to 1.5 percentage points a year over time, reflecting the illiquidity premium.
By comparison, Yale University's $44.1 billion endowment returned 9.4% over the decade through June 2025, its most recent disclosure. Yale has not yet published FY 2026 figures, and the NACUBO-Commonfund Study of Endowments, the most-cited annual study, is scheduled for publication in February 2027.
Joe Lee, president and chief investment officer of ACIMCO (Abilene Christian Investment Management Company), a university-controlled investment company, said the school's results reflect many small, sound decisions made years ago that have compounded over time. He described the strategy as equity-oriented, with long time horizons, good managers and diversification. Lee said a smaller endowment can be an advantage, noting that ACIMCO can evaluate a $100 million fund and find it material, while larger endowments often set minimum fund sizes. A little more than half of ACU's endowment is in private investments and a little less than half in public markets, and Lee said private and public equity returned similar amounts in fiscal 2026. The endowment also carries donor-imposed restrictions and a mission to draw on it for current and future students.
Other small schools have also outperformed. Reed College, with an $885 million endowment, reported 7.5%, 12.4% and 11.6% returns over three fiscal years through June 2025, versus Yale's 1.8%, 5.7% and 11.1%. Colby College reported an 18.2% return for the year ended June 30, 2026, and a 10.5% 10-year annualized return net of fees, on a $1.4 billion endowment. Colby CIO Deborah Shufrin credited long-standing relationships with premier private fund managers.
Not all observers accept the edge as durable. Anna Dunn Tabke, founder of Leita Advisory, cautioned that comparisons may be distorted because some schools report through June 2026 while Yale's 10-year figure ends in June 2025. Using Confluence data across 259 small and mid-sized endowments, she said the top-5% 10-year threshold rose from about 8.45% to roughly 10.5% in one year, and that results were unusually dispersed. She also noted that private equity has returned little for about three years, and that some Yale-style investors benefited from holdings in SpaceX after its June listing. R. Keith Sauls, CFA, of Farther Finance, said the recent edge is real but largely reflects timing and the fact that large endowments' venture and private equity holdings are revalued infrequently during strong public markets. He estimated that larger endowments generally outperform by one to 1.5 percentage points a year over time, reflecting the illiquidity premium.
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