Yale To Snap Up More Hedge Fund Assets

From Bloomberg: Yale University, the second- wealthiest college, may increase its holdings of hedge funds after cutting them last year and shifting into cash, according to a report from the investments office run by David Swensen.

Yale, whose $19.3 billion endowment is second in size only to Harvard University’s, may boost hedge fund investments to 18 percent of its portfolio after cutting them to 14.5 percent in the year that ended in June, according to the report posted to the investments office website. The university also increased its target for private equity and real estate holdings.

The new targets show New Haven, Connecticut-based Yale’s appetite for buying hard-to-sell assets is growing again after the investments contributed to the school’s record 24.6 percent loss amid the global financial crisis in 2009. Swensen, who has run Yale’s investment office since 1985, is credited with crafting a model for universities to generate superior returns by buying more of the so-called illiquid assets while cutting holdings of bonds, publicly traded equities and cash….

Read more at http://www.bloomberg.com/news/2013-01-16/yale-may-buy-more-hedge-fund-assets-after-favoring-cash.html