Moody's lowered it's rating on the exclusive Spence School's $15.3 million of municipal bonds by one level last month to A1, reports Bloomberg. The move was driven by the fact that after purchasing some land near its Manhattan campus, the school's endowment may be overexposed to a single hedge fund. Moody's said last July that about 28 percent of Spence's endowment, or $25.6 million, was in Juggernaut fund, run by none other than Stanley Druckenmiller, whose wife served as a non-voting trustee for many years. 

Truth be told, about half of Spence's endowment was in alternatives, 39 percent was in stocks and 10 percent was in fixed income as of June 30, Bloomberg notes. While Druckenmiller's funds have held up, it's hard to maintain strong performance year after year. It may be white knuckle time for the school. Endowments at a lot of schools have been plunging. Few high schools have issued bonds like Spence. This will be the talk of the town in Manhattan. 

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