Is Yale’s David Swensen Horrible for Investing?

An article in Institutional Investor offers an in-depth discussion of the Yale University endowment investment model created by David Swensen, who has overseen the portfolio for over three decades, and the impact it has created in the nonprofit world. The article describes Swensen, the esteemed university’s chief investment officer for nearly 35 years, as the “architect” of the Yale model who has “raised an entire generation of endowment CIOs in his image,” but adds that… Read More

Yale Says its Endowment “Crushes” Indexes

The 2017 Yale University annual report argues in favor of active management strategies used by the investment offices of the country’s ivy league schools, according to a recent article in Institutional Investor. In the report, Yale rebuts Warren Buffett’s suggestion–stated in his 2016 letter to Berkshire Hathaway shareholders, that endowments and other institutional investors would be better off investing in an index like the S&P 500—by claiming that the top ten U.S. university endowments “amaze,” and… Read More

Yale Endowment Learns Lesson on Diversification

Strong long-term performance has made the Yale University endowment fund—with a mere 4% weighting in U.S. stocks and heavy allocations to alternative investments– the widely accepted diversification model, according to a recent article in Barron’s.  In the last ten years, however, the approach hasn’t worked so well. The fund has “lagged the U.S. equity market amid one of the great bull runs in history,” the article says, adding that a buy-and-hold investor in the S&P… Read More