Yale University

Generated outreach message alignment report
1. You prioritize long-term partnerships with external, world-class managers.
As an entrepreneurial, owner-managed, high-conviction manager with a long track record, we’re built for multi-year partnerships as an external manager.
Evidence
“Diversification, disciplined risk management, and long-term partnerships with world-class managers will continue to best advance Yale’s mission across market cycles, and the endowment’s long-term performance and spending growth affirm the power of our approach,” he said.” “Yale pursues an investment strategy designed to achieve its goals... through the astute selection of external investment managers within those asset classes.”
2. You maintain an equity-oriented portfolio and seek strategies that exploit market inefficiencies, with a tilt away from fixed income.
Our concentrated best-ideas, equity-focused approach targets inefficiencies globally and aligns with your equity bias and active alpha mandate.
Evidence
“Both the need to provide resources for current operations and the desire to preserve the purchasing power of assets lead the endowment to be weighted toward equity investments.” “The university endowment maintains a diversified investment portfolio with a strong orientation to equity investments and strategies designed to take advantage of market inefficiencies.”
3. You target meaningful exposure to non-correlated/absolute-return strategies for diversification.
Our low-correlation return profile is designed to complement equity-heavy portfolios and support diversification mandates.
Evidence
“Yale targets a minimum allocation of 30% of the endowment to non-correlated assets (cash, bonds and absolute return).” “16.4% Marketable alternatives”
4. You invest globally across domestic and international securities, with a notable emphasis historically on foreign/developed markets.
Our global mandate with deep international coverage (including EM) can add differentiated alpha where you have historically leaned into non-U.S. opportunities.
Evidence
“through domestic and international securities” “Asset allocation targets for fiscal 2017: ... Foreign Equity: 15% ... Domestic Equity: 4%”
5. You are comfortable with a wide range of liquidity terms, including multi-year lockups and closed-end vehicles.
Our concentrated strategy can offer durable capital terms that align incentives and support compounding—terms you already accommodate.
Evidence
“Redemption terms range from monthly with 3 days notice to annually with 90 days notice. Lock-up provisions range from none to 7 years.” “Closed end funds not eligible for redemption. Not redeemable.”
6. You define success over long horizons and accept periods of short-term underperformance.
Our high-conviction process is built for long-term value creation and is managed by owners who can stay the course through volatility.
Evidence
“"we remain focused on achieving investment success over the long term, knowing that doing so is likely to bring stretches of short-term underperformance."” “the endowment invests with a long-time horizon”
7. You seek managers who can outperform simple passive mixes and exceed inflation plus spending needs.
Our concentrated, alpha-driven portfolio targets excess returns over 70/30 and aims to compound above inflation plus a 5%+ spending rate.
Evidence
“Yale’s result exceeds that of a typical 70/30 stock and bond portfolio by 3.8% over both the past 10 and 20 years.” “The university determines the expected return on endowment investments with the objective of producing a return exceeding the sum of inflation and the target spending rate.”
8. You maintain a dedicated emerging equities sleeve and accept less-liquid EM structures, albeit at currently low weights.
Our global strategy includes an EM capability that can be deployed selectively with robust governance—useful when revisiting EM within your allocation framework.
Evidence
“Investments at NAV as of June 30, in thousands of dollars, include: ... Emerging equities 1,266,060 1,379,524” “Redemption terms range from monthly with 15 days notice to closed end structures not available for redemption. Lock-up provisions range from none to 7 years.”