Penn holds over $79 million in gambling company and Krispy Kreme shares, DP analysis finds
An Analysis of Penn’s Stock Investments
According to a recent analysis by the Daily Pennsylvanian (DP), the University of Pennsylvania (Penn) has consistently held stock investments in Krispy Kreme Inc. and Light & Wonder Inc., among other companies. The analysis was based on Penn’s Form 13F filings, which are quarterly reports required to be submitted to the United States Securities and Exchange Commission by institutional investment managers.
The DP analysis found that both Krispy Kreme, an American doughnut and coffeehouse chain, and Light & Wonder, an American company specializing in gambling products, have appeared in every 13F filing submitted by Penn since the first quarter of 2022. In fact, these two companies consistently held the first and second-highest market value among Penn’s holdings listed in the filings.
Over the past seven quarters, Penn’s holdings in Light & Wonder have averaged $41 million, while its holdings in Krispy Kreme have averaged $28 million. These investments have consistently remained high in market value, with Light & Wonder recently reaching an all-time high value of over $49 million.
Public Opinion and Campus Perspectives
The DP article includes comments from Wharton students who expressed support for Penn’s holdings in Krispy Kreme and Light & Wonder. Malia Sanghvi, a Wharton sophomore and vice president of membership for the Wharton Undergraduate Finance Club, stated that she trusts the analysts and does not have any concerns about the household brand of Krispy Kreme. Similarly, Francesco Salamone, also a Wharton sophomore and member of the Wharton Impact Investing Partners, viewed Penn’s investments in Coursera positively because of the company’s ties to education.
Biotechnology Sector and Penn’s Investment Strategy
The DP analysis also highlighted that 30% of Penn’s 13F holdings since the first quarter of 2022 are in biotechnology companies. Three biotech companies – Carisma Therapeutics Inc., RAPT Therapeutics, and Ginkgo Bioworks Holdings Inc. – have been featured in Penn’s 13F reports. Carisma Therapeutics, valued at over $19 million, is a biotech company focusing on cellular immunotherapy for solid tumors. Interestingly, this company was co-founded by Saar Gill, a professor in the Perelman School of Medicine at Penn, and Michael Klichinsky, a Ph.D. holder from Penn’s pharmacology program.
Changes in Penn’s Stock Portfolio
The DP analysis also highlighted changes in Penn’s stock portfolio over time. It was noted that the value of Penn’s holdings in Keurig Dr. Pepper Inc. experienced a substantial drop after the first quarter of 2022. Additionally, Meli Kaszek Pioneer Corp. has been absent from Penn’s holdings since the second quarter of 2023, as the company was liquidated on June 5.
Editorial: Balancing Financial Investments and Ethical Considerations
Penn’s stock investments, as revealed in the DP analysis, raise important questions about the balance between financial investments and ethical considerations. As a prestigious educational institution, Penn has a responsibility to align its investments with its educational mission and values. While it is understandable that diversifying investments is a common practice for institutions, it is crucial to scrutinize the companies in which Penn chooses to invest.
Investments in companies like Krispy Kreme, which is primarily known for its sweet treats, may raise eyebrows among those concerned about public health and nutrition. Similarly, investments in the gambling industry, through Light & Wonder Inc., raise concerns about the university’s support of an industry associated with addictive behavior and social issues.
Penn must consider the potential harm and ethical implications of investing in certain industries. It is important for universities to prioritize investments that align with their academic focus and societal impact.
Encouraging Transparency and Public Engagement
Revelations about Penn’s stock investments emphasize the need for transparency and public engagement when it comes to the university’s investment strategies and decisions. Students, faculty, and other stakeholders have a right to know how their institution is investing their funds and whether those investments align with the institution’s values.
The DP article includes comments from Wharton student Francesco Salamone, who suggests that there is a need for clarity online regarding Penn’s general strategic framework for investment. Providing more information about the university’s investment goals and how they relate to its mission can facilitate understanding and discussion among the Penn community.
Advice: Aligning Investment Strategies with Institutional Values
Penn, like other educational institutions, can take steps to ensure that its investment strategies align with its institutional values and mission. Here are some recommendations:
1. Conduct a thorough assessment: Penn should assess its investment portfolio to determine whether certain holdings align with its educational mission and values. It should consider divesting from companies that conflict with these principles.
2. Develop an ethical investment policy: Penn should develop a clear and comprehensive ethical investment policy that outlines the criteria for investment decisions. This policy should consider environmental, social, and governance factors and the potential impacts of investments on public health, social justice, and other relevant issues.
3. Engage with stakeholders: Penn should actively engage with students, faculty, and other stakeholders to gather input and feedback on its investment decisions. This can foster transparency, accountability, and a sense of shared responsibility.
4. Prioritize impact investing: Penn should explore opportunities for impact investing, which focuses on generating positive social and environmental impacts alongside financial returns. This approach can allow the university to contribute to solutions for pressing societal challenges while still achieving its financial goals.
5. Seek external expertise: Penn may benefit from seeking guidance from external experts, such as sustainable investment consultants or advisory boards, to ensure that its investment decisions align with best practices and industry standards.
By taking these steps, Penn can demonstrate its commitment to responsible investing and strengthen its role as an educational institution that not only educates students but also contributes positively to society at large.
<< photo by Mathias Reding >>
The image is for illustrative purposes only and does not depict the actual situation.
