No, You Shouldn’t Invest Like Yale

My latest post for Alpha Baskets looks at the recent results from the Yale Endowment and what you should and should not take away from its portfolio.

It is not practical for the typical advisory client or individual investor to emulate Yale’s portfolio for a couple of big reasons; endowments have infinite time horizons and access to some of these market segments is either unavailable or the choices that are available aren’t so great. Venture Capital is an example of this. The press release does not mention private equity but I am assuming that they mean venture capital and while there are quite a few exchange traded products (funds and individual issues) that seek to track the private equity space one way or another there are far fewer that I am aware of that track venture capital. The one that I do know (mentioning names becomes tricky for compliance reasons) went down with the broad equity market during the crisis but hasn’t really participated in the bull market since (up 28% since March of 2009 vs up 194% for the SPX). 

Please click through to read the entire post.

A Ural motorcycle on the streets of Prescott.

14425534_1801984603416318_7699421180971818120_o

An old GMC pick up truck at a recent car show.

14480624_1802496390031806_3673384471793385548_o

A collage featuring a Tatra fire tanker from Maui.

14409519_1802511123363666_2592983099107865685_o

 

Submit a Comment

Your email address will not be published.

WP-SpamFree by Pole Position Marketing