Yale Cuts Back On Private Equity

Oct 21 2013 | 11:12am ET

Yale University's endowment is a pioneer in alternative investing. But its taste for private equity may be waning.

The $20.8 billion endowment—the second-largest in the U.S.—has cut its p.e. target for the first time in eight years. Yale aims to have 31% of its assets invested in such funds for the fiscal year the began on July 1, compared to 35% in the previous fiscal year, The Wall Street Journal reports.

Yale would not comment on the change.

The move does not indicate that Yale has lost faith in the asset class; p.e. remains the largest part of its portfolio. And those investments have been among Yale's best, earning it a 14.4% annualized return over the past 10 years.

Yale also cut its real-estate target, but increased its hedge-fund target, as well as its targets for foreign stocks and natural resources.


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