Yale University Investments Office: August 2006 case analysis
Summary :
Table of Contents
- Introduction
- Yale Investment Office
- Yale's investment philosophy
- Asset selection and allocation
- Domestic and foreign equity
- Bonds and cash
- Absolute return
- Real assets
- Approach to private equity
- Investing abroad
- Private equity vs. real estate
- Performance evaluation
- Venture capital: Private equity
- Shifting strategies
- Recommendations
- Post mortem
Abstract
The study of a funds management especially serves an important purpose for large institutions. Financial management is a required skill for the stable operation of any institution that would continue into the foreseeable future. The following is a case study about yale's investment policy focusing on the past few decades to 2007. yale is a college founded in 1701 and started with an endowment of five million dollars at the end of the century. The investment policy of yale could be reflected to the economic characteristics of that particular era. In the 1930's, Treasurer Laurence Tighe implemented the strategy of holding two dollar of fix income to every one dollar of equities. The 60's have another shift in policy where more funds is allocated toward equities. During this particular era, yale also began to contract out financial decisions to outside management firm. The move caused the endowment fund to lose around half of the original amount, thus, yale chose to terminate the contract.
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