Case Analysis
Yale University enthronisations Office: August 2006
Executive Summary
The Yale Investments Office has managed the universitys natural endowment well,
growing it at average annualized rate of 15.4% all over the last 20 years. It has helped
pioneer the extensive use of offstage fair-mindedness and other secondary summation classes to
produce maestro growth and increase the diversification of its assets. The Investments
Office reports to the universitys Investment Committee, many of whose members are
from the world of investment management. The Investments Office is responsible for
managing the endowments fixed income assets, setting the endowments investment
ism and strategies, identifying and selecting top notch investment advisers,
determining the target asset allocation mix for future investment periods, and hedging
against overexposure in its secret equity investments.
Its unique investment philosophy combined with long-term, high-quality staff
allows it to oppose long-term mutually beneficial relationships with its investment
advisers.
It is recognizing some changes in the secluded equity industry that has been an
integral part of its long-term winner that is causing it to consider its current investment
strategies and use of domestic and external private equity investment funds. The
endowments gaffer rationale behind using private equity and alternative investment
classes revolves around their investments in less efficient markets, where their
particular familiarity and expertise allows them to earn excess profits by taking
favor of the information asymmetries in those less efficient markets.
Regarding whether the Investments Office unavoidably to make any changes to its
investment strategies and allocations, we determined that there impart still plenty of
opportunities for the endowment to benefit from private equity investment funds.
Therefore, we do recommend some changes to its current allocation. Our canvass of the
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