Institutional Investors

Yale lowers absolute return target to 15%


A casualty of the liquidity crunch, the absolute return portfolio target allocation has been lowered at Yale University after the endowment lost 25% in the fiscal year ending 30 June 2009.

In its annual financial statements, the university announced its intentions to lower its long-term target allocation to hedge funds to 15% from the 24% allocation that has been employed for more than five years in the now $16 billion investment portfolio overseen by long-time endowment chief David Swensen.

The fiscal year was marked by the ongoing financial crisis during