Yale Endowment Model

The Yale Endowment Model is an investment strategy used by Yale University’s endowment fund to sustainably grow its wealth. It emphasizes diversifying investments across various assets like equities, real estate, private equity, and hedge funds to maximize returns while managing risk. The approach often involves allocating a significant portion to alternative investments, which can offer higher gains but also come with higher complexity and risk. This model aims for steady, long-term growth to support the university’s educational mission, even through market ups and downs, by balancing risk and return through strategic diversification.