Applying the Endowment Model to Individual Portfolios

Our investment approach is inspired by the principles of David Swensen's Yale Endowment Model, emphasizing diversification across multiple asset classes to achieve superior risk-adjusted returns.

Asset Allocation & Investment Selection

We construct portfolios that blend traditional assets with alternatives, aiming to:

Increase Returns: By identifying undervalued opportunities across various markets.

Lower Volatility: Through diversification and strategic asset allocation.

Reduce Risk: By incorporating assets with low correlation to traditional equities and bonds.

Enhance Income: Utilizing alternative investments that offer higher income potential.

Asset Class Efficiency

Understanding the pricing efficiency of different asset classes allows us to identify areas where active management can add value. We focus on less efficient markets where thorough research and expertise can lead to superior outcomes.

Alternatives as Superior Diversifiers

 In today's market environment, bonds have exhibited increased volatility and correlation to equities. We advocate for the inclusion of alternative investments - such as private credit, private equity, real estate, and hedge funds - as they can offer higher income, lower volatility, and uncorrelated returns, serving as superior diversifiers in a well-constructed portfolio.