Fund Manager Advantage
80% of Yale’s endowment outperformance relative to average university endowments in the last 20 years is attributable to the value added by active hired managers. Fund manager selection is imperative to the Yale Endowment, which is considered by some as the most prestigious and highest-performing endowment. We believe it is possible to outperform for our clients through similar methods by partnering with exceptional fund managers.
History suggests 1% improvement opportunities are not unreasonable. There are many possibilities for those willing to go out and find them. A $100,000 investment in the Yale Endowment in 1985 would be worth more than $4.0 million today. When the S&P 500 declined by 30% from June 2000 to June 2003, the Yale Endowment gained roughly 20%. There are opportunities to sidestep benchmarks in difficult times and perform comparatively quite well. In order to do this, we use our proprietary investment process.
In order to capture 1% improvement opportunities, we place an emphasis on doing little things right.
“Treat growth … as a science, not an art form. Follow-up with same kind of rigor at your operations management”