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.


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


A collage featuring a Tatra fire tanker from Maui.



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