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Yale's revolutionary strategy

By Inderes

This video is in Finnish with English subtitles. Turn on subtitles from the CC button.

The endowment of Yale University stopped investing in bonds three decades ago and started heavily investing in alternative investments. The rest, as they say, is financial history.The long-term investment success relies heavily on David Swensen who passed away in May 2021. His investment model is used to move massive amounts of capital outside of Yale too.

Contents of the video:
00:00 Yale's investment success in a nutshell
01:22 David Swensen's youth and years on Wall Street
03:19 Yale calling
07:22 Beta is a lousy metric for risk
09:40 When alternative investments come marching in
11:20 Criticism with little understanding
16:08 What can we learn from Swensen?

Further information and sources:
- Yale Investment Office: https://investments.yale.edu/
- Swensen's visitor lecture at Yale: https://www.youtube.com/watch?v=wRdx7kVNQ_E
- Financial Timesin article: https://www.ft.com/content/e43825e7-7824-4355-881b-cb11629cd070- Kaura, Hannu (2009). Osakemarkkinoiden näkymät ja haasteet eläkesijoittamiselle. Available (in Finnish): https://core.ac.uk/download/pdf/33463896.pdf

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