To gain alpha, institutional investors have many avenues. For large investors, the endowment model has traditionally worked well. However, it can lead to overdiversification and pose challenges for smaller investors looking to replicate the model, according to a new paper. In the endowment model, also known as the Yale model, large endowments typically outsource the […]
The authors do not believe the endowment model is wrong, rather, its diversity has been overestimated.
Primack argues Yale upped its exposure to private equity to manage the risk of capital calls.
