Shoulders of giants
Aofinn Devitt analyses the Yale approach to investment management and finds some learning points for charities despite the foundation’s scale
Often imitated, never equaled. This familiar slogan perhaps sums up the popular response to the legendary style of investment management practised by David Swenson and his team at the Yale endowment. While the returns (16.3 per cent annualised over the 10 years from 1998 to 2008) and ground breaking techniques are awe-inspiring, the size of the endowment, the depth of its skills and resources and its clout are, alas, unparalleled. Many institutions seek to emulate Yale’s asset allocation, its bold approach to illiquid assets, and, at their peril, its tactical overlay techniques. Few have the skills, resources or size to pull it off. However, we believe that charities, large and small, can still take some vital lessons from what David Swenson and the rest of the Yale investment committee have practised since 1987.
Author: Aofinn Devitt
Prior to establishing Clontarf Capital in 2006 which specialises solely in alternative assets, Aoifinn Devitt was an alternatives consultant at Cambridge Associates Limited (London and Boston) with a particular focus on hedge funds. She has a first class degree in law, a BCL (Oxon) and an MBA (Dean’s list) from INSEAD. She is a member of the New York Bar.
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