Despite what has been a middling year at best for hedge funds and the stock market, the performance of college and university endowments has been stunning. 

Colleges and universities nationwide reported an average return of 19.8 percent, according to a report by the Commonfund Institute and the National Association of College and University Business Officers. That's the average, as some have reported even higher gains.

The University of Iowa, for example, reported a 28 percent gain for the fiscal year. Columbia University's endowment has reported a 23.6 percent gain for the year ending June 30. Other Ivy League schools fared well also with Yale and Princeton universities both generating 22 percent gains during the past year. Harvard University's endowment rose 21.4 percent to $32 billion during 2011, according to Institutional Investor. At Harvard, the "absolute return" portfolio, Harvard's collection of external hedge fund managers, returned 11.6 percent for the fiscal year.

So what's going on?

The reporting period for the fiscal year may be the most salient factor. From June 30, 2010, to June 30, 2011, the overall market was in rally mode. The big gyrations didn't start until the summer. Then again, there may well be some superior hedge fund picking at play. In any case, next fiscal year could be a whole different story.   

For more:
- here's a look at UI
- here's the article from II

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Harvard Endowment takes its lumps