Endowment Model

“Well, I think one of the biggest things is that there is so much money trying to invest in this endowment model, yet there's only so much capital allocation within these firms, especially the top tier firms. And so in some ways, yes, we'd love to collaborate w…”

“That's the single biggest change in the endowment model is the risk management, and that's what risk management means to us.”

“Almost all asset classes are included in almost all client portfolios, even the private equity GPs today. So the customization came down to really sizing of managers or simple allocation decisions, whether it's eight percent private debt versus 10% private deb…”

“Some of the differences, first, there are a set of Areas that endowments seem to like to invest in that to us seemed like poor returns on risk. And so those included for most of the 16 years we've been doing this, most of credit has fallen in that category. Wh…”

“When you think about the David Swenson model, people think it's this recipe that you can replicate by just throwing ingredients into a bucket and throwing them into an asset allocation model, and you're going to get the same results. And the reality is you hav…”

“Is it appropriate, therefore, for another institution to copy Yale's endowment model? The answer is, if you're Princeton, yes. If you're some very small university in the middle of the country that's already having trouble getting students each year, no, becau…”

“It's hard to generalize institutions because so many people talk about the endowment model and forget that it really isn't for everybody. There are a lot of institutions that outsourcing it or indexing it is actually a really great option. It's for a specific …”

“And I would argue there might only be 50 or 60 investors in the world who really can do this model well. I don't think there's a lot. I think most people should be using more of these other techniques.”