Endowment vs Pension Returns
By Michael Karris (EndowBridge Capital) Does the Endowment Model still work? Judging by large endowments’ steady outperformance of a 70% global stock /30% US bond index, THE ANSWER IS YES. Versus a 60% US stock / 40% US bond index, the answer is not as clear cut. Even so, the Endowment Model still adds value for a long-term portfolio that uses alternative assets, especially venture capital. The lucrative illiquidity premium has generated superior returns for U.S. endowments versus other investors, especially through...