Yale economists advised the endowment to prioritize manager selection over theoretical portfolio modeling
Alan Forman · Alan Forman – Yale Endowment Real Estate (EP.340) · Sep 25, 2023 · at 29:14
Former Yale Investments Office Director of Real Estate Alan Forman recalls consulting Yale finance professors when restructuring the endowment's real estate portfolio in the 1990s.
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“And it's funny, because we went to all these very impressive Yale professors and asked them, how do we create a portfolio? How do we Find the efficient frontier, all these economists like Ibbotson and Stephen Ross and people like that, and they just said, find good people. It was the opposite of the ivory tower mindset. Just go find good people doing really interesting things and set up the right structure, and it'll take care of itself.”
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