No. of Recommendations: 5
I was surprised to read Yale's Endowment is only 3% Domestic Stocks. Much larger positions in long/short hedge funds and venture capital.

"Today, domestic marketable securities account for less than one-tenth of the portfolio, while foreign equity, private equity, absolute return strategies, and real assets represent over nine-tenths of the Endowment."

Yale 2019 Asset Allocation targets:
26.0% Absolute Return Funds
18.0% Venture Capital
15.5% Foreign Stocks
15.0% Leveraged Buyouts
9.5% Real Estate
6.5% Natural Resources
6.5% Fixed Income and Cash
3.0% Domestic Stocks

"The Yale Endowment is one of the most successful institutional investors in the world, averaging an 8.1% annual return over the last decade; through June 2013, Yale’s 25-year average annualized performance topped 13%."
“[Low-cost passive index strategies] make sense for organizations lacking the resources and capabilities to pursue successful active management programs, a group that arguably includes a substantial majority of endowments and foundations,” Yale writes.
"Simply stated, Yale thinks low-cost index funds are good, they are just not good for Yale."
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.