Entries by Charles F. Hofer, CFA

    Can Institutional Investors Learn from Yale's Patient Approach?

    May 13, 2015 2:55 PM by Charles F. Hofer, CFA

    New active share research—and Yale's successful record with domestic and international equities—suggest that patience is rewarded.

    Yale's endowment fund has received much attention for an approach to asset management that has proven highly successful during the past 20 years. Over this period, the endowment has posted returns averaging 13.9%, according to the endowment's latest annual report. Much of the success has been attributed to chief investment officer David Swenson's preference for illiquid alternative investments, such as timberland and private equity. [Of course, alternative investments are not without risks. These can include: investment risk, liquidity risk, operational risk, and organizational risk. And, as with all investments, past performance is not a guarantee of future results.]

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