“Fiscal year 2018 was a stronger year for Ivy endowment performance than fiscal year 2017. Traditional outperformers continued to outperform, taking advantage of a strong year in private equity and venture capital. Looking back at the past 10 years, however, none of the Ivies were able to beat a domestic 60-40 portfolio, a traditional measure of a diversified portfolio.
With the prospects of increasing inflation and spending rates that have generally been on the rise over the past few years, endowments are admittedly under pressure to achieve superior performance. In the process of doing so, they employ a variety of tactics, such as investing in illiquid asset classes with the hope to earn long-term premia or carefully selecting hedge funds that promise to provide alpha and diversification.”
It never gets easier, you just get better.
Post by Marcelino Pantoja