Over the past two decades as of June 30, 2015, Yale's endowment generated returns of 13.7% per annum, outperforming the classic 60-40 Model (Source: Yale Endowment 2015 Annual Report). Public markets contain high levels of volatility which mixed with investor's emotional volatility lead to
poor investment decisions, i.e. buy high - sell low.
Adding alternative investments with less correlation to the market will smooth out volatility and constrains emotional decisions resulting in higher returns over time.
Alternative Investments that Cornerstone considers for our client's portfolio include:
Senior Secured Debt
Non-Traded REIT or Institutional REIT Funds
Hedged Equity Strategies
T H E Y A L E F O U N D A T I O N M O D E L