The Yale Endowment Model

The Yale Endowment Model is an investment strategy used by Yale University to grow its large fund, which supports its operations. It diversifies investments across various asset classes like stocks, bonds, real estate, and alternative investments such as hedge funds and private equity. This approach aims to balance risk and return over the long term, protecting the fund during economic ups and downs while generating steady growth. By spreading investments widely and including less conventional assets, Yale seeks to achieve higher returns than traditional investment methods, ensuring sustainable funding for education and research.