Monday, January 28, 2013

Evolution of Yale's Portfolio

A topic I haven't covered for a while - endowments. The Yale portfolio is the most dissimilar to our own portfolios of those I track. They have very little foreign equity and lots of private equity and those trends have been accentuated over recent years. Their allocations to hedge funds and domestic (US) equity have also almost halved. I have an update on Harvard's rate of returns but they are vague on portfolio allocation.


Financial Independence said...

Overall quite poor to be perfectly honest, particularly inflation adjusted.

I am not sure about their risk, so it is hard to make a definitive statement.

mOOm said...

I don't know how you can say that Yale's performance is poor when it is so much better than the market portfolio.

Financial Independence said...

Simply because if you would invest $100 in 2008 you would have $109.5 now and this is without fees taken into account.

One would be much better off with a CD or TIPS. Less risk the same return or better.

Yale fund performance as presented does not even cover inflation over the 5 year period.

If you would invest in any big company or array of them - you would get more off dividends.