How hating Israel could cost America $33.2 billion

Anti-Israel protests in London, June 2024 — Photo: Shutterstock / SunshineMunu

A new report from the Anti-Defamation League (ADL) suggests that the top 100 American universities could face substantial financial losses if they choose to boycott Israel. The study, conducted by JLens, an ADL subsidiary, projects potential losses of $33.2 billion in endowment returns over the next decade.

Key Findings:

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1. The ADL analyzed two hypothetical large-cap U.S. equity portfolios: one diversified without restrictions, and another excluding companies targeted by Boycott, Divestment, and Sanctions (BDS) campaigns.

2. Companies excluded from the BDS-compliant portfolio include tech giants like Alphabet (Google's parent company), Amazon, and Microsoft, as well as Caterpillar and Lockheed Martin.

3. The study found a significant 1.8 percentage point gap in returns between the two portfolios. The BDS-compliant portfolio showed returns of 11.1% compared to 12.9% for the unrestricted portfolio.

4. Top-tier institutions could face substantial losses:

- Harvard, Yale, Stanford, and Princeton are projected to collectively lose over $8 billion in estimated endowment returns over a decade.

- Brown University, which is considering Israel divestment, could miss out on an estimated $309,787,060 in returns on its $6 billion endowment.

ADL CEO Jonathan Greenblatt emphasized the dual risks of boycotting Israel, stating, "Calls for universities to divest from companies doing business in Israel are not only morally dangerous, but may also be financially dangerous." He added that university investment committees have a fiduciary responsibility to manage institutional resources prudently.

This report comes amid ongoing debates on many campuses about the Israel-Palestine conflict and the role of academic institutions in geopolitical issues.

Voz is Neias contributed to this article.