University endowments that already rank among the richest in the country are getting richer than their poorer peers, thanks to investments in alternatives, according to a survey by the National Association of College and University Business Officers. Last year, the survey found, Stanford University came in with the third richest endowment, behind Harvard University and Yale University, growing 19.5% for the 12 months ending June 30, adding $2.27 billion to its coffers. Randall Livingston, CFO at Stanford, credits the school's investment success to getting in on the ground floor of first-tier Silicon Valley venture capital funds.

The survey, conducted with TIAA-CREF, noted that the big endowments will invest more in alternative because they can meet the minimum required investment, something smaller schools can't always do. According to the survey, schools with at least $1 billion had an average of 21.7% of assets in hedge funds, compared with 2.4% for schools with under $100 million. The study concluded that in addition to having the money to invest, the big endowments can also afford pricey advice.