If the Princeton University Investment Company (PRINCO) had instead adopted a more conservative investment strategy 10 years ago, focusing on highly liquid assets that offered great short-term flexibility, the endowment would be worth less than half of what it is worth today, PRINCO president Andrew Golden said.

Just because the University has a $12.6 billion endowment doesn’t mean that it can quickly come up with $12.6 billion to spend on any given day. In fact, the University can only convert about half of its endowment to cash with ease.

Despite its name, the Princeton University Investment Company (PRINCO) doesn’t do any investing directly. Founded in 1987 to manage the University’s assets, PRINCO creates broad guidelines for its investment portfolio and then selects outside investment managers to give funds to, until the portfolio resembles PRINCO’s target. Instead of being an investment manager, PRINCO is more of a “manager of managers.”

After last year’s market turbulence, the Princeton University Investment Company, headed by its president Andrew Golden, is re-examining its investing strategy with the aim of increasing liquidity.