Mon, Nov 30, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Yale Endowment posts positive performance, focuses on alternatives

Wednesday, March 19, 2014

Bailey McCann, Opalesque New York:

The Yale Endowment, currently worth over $20bn posted another positive return year for 2013 with gains of 12.5%. The endowment is closely watched as a barometer of top endowment portfolio performance, in part because it maintains significant allocations to hedge funds and private equity. Spending from the endowment is up 8% over the last ten years, and is likely to continue going up providing some context around the recent announcement that tuition costs will go up at the school.

Even with this rise in costs, endowment assets have also grown over the same period from $11.03bn to $20.78bn. In a recent report, the endowment speaks directly to recent criticism that the portfolio's emphasis on active management and alternative investments has been risky and of limited value. To wit:

"While traditional asset allocations held up well during fiscal 2009 and in the immediate aftermath of the crisis, that short term outperformance came at a heavy cost to the growth of a portfolio's value over the long term. During periods when traditional portfolios outperform critics are quick to cast aspersions on the Yale model, but traditional 60 percent equity/40 percent bond portfolios are not diversified and ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  4. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega

  5. More institutional investors invest in CTAs compared to last year despite dissatisfaction with performance[more]

    Benedicte Gravrand, Opalesque Geneva: "Despite a strong start to 2015 for CTAs in Q1, commodity market conditions have made return generation difficult for fund managers over much of the rest of the year to date," says Preqin’s November