Canaries are dropping. The Long Wave will not be denied.
What is your asset allocation if you don’t mind me asking?
Canaries are dropping. The Long Wave will not be denied.
I disagree that we need active managers. We need active traders, not necessarily active managers. The market is set by them and will continue to be set by them, absent of active management.
Harvard disgusts me on many levels, and I do get some pleasure in seeing their high brow approach take a beating in the media and compared to their other uppity peers. These asshats could skim 2% off their returns on an annualized basis and completely fund educational expenses for all their students. Instead they charge $90k per year to go to their medical school, allowing their graduates to leave with nearly $400k of debt. Shameful. I would point out, however, that these are 1 year returns. If you look at the long haul, as you can see in the above financial report, they clearly beat a passive fund strategy. So while we may take solace in the fact that our portfolios beat them over a short period of time, the upper crust may have the upper hand.
“However, Yale has demonstrated its ability to identify top-tier active managers that consistently generate better-than-market returns, after considering performance fees.”
Endowments, as well as foundations/family offices etc., are totally different beasts than our personal finance world, so tough to draw comparisons. For those laughing at the returns, Harvard has done pretty well (especially relevant for the long-term investors of this board!):
Average annualized return of 5.9% over the past five years, vs. 5.4% for its benchmark; 5.7% for 10 years, compared with 4.8% for its benchmark; and 10.4% over the past 20 years, vs. 7.7% for the benchmark.
It wasn’t clear from the article, but are the losses before or after the salaries paid to the staff that manages it?
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