Yale Boosts Private Equity, Cuts Hedge Funds

Mar 22 2010 | 2:06pm ET

One of the biggest hedge fund investors in the U.S. is cutting back on the asset class.

Yale University’s $16.3 billion endowment has reduced its hedge fund allocation from 21% to 15% to fund increases in its private equity and real estate and commodities portfolios. The former, Yale’s best performing asset class over the past decade, will rise from 21% to 26%, while the latter will be increased from 29% to 37% of the endowment’s assets.

“Alternative assets, by their very nature, tend to be less efficiently priced than traditional marketable securities, providing an opportunity to exploit market inefficiencies through active management,” the school wrote in a report released last week. “The endowment's long-time horizon is well-suited to exploiting illiquid, less-efficient markets such as venture capital, leveraged buyouts, oil and gas, timber and real estate.”

Yale made the allocation changes at its June 2009 investment committee meeting.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR