Case | HBS Case Collection | October 2011 (Revised March 2013)

Yale University Investments Office: February 2011

by Josh Lerner and Ann Leamon

Abstract

David Swensen and the Investments Office staff must decide whether to continue to allocate the bulk of the university's endowment to illiquid investments—hedge funds, private equity, real estate—given the impact of the recent market turmoil. The case explores the risks and benefits of a different asset allocation strategy and also considers how to classify some of the different assets. It highlights the issues around allocations across different subclasses, e.g., between venture capital, hedge funds, and real assets.

Keywords: Asset Management; Resource Allocation; Investment; Venture Capital; Investment Funds; Property; Private Equity;

Citation:

Lerner, Josh, and Ann Leamon. "Yale University Investments Office: February 2011." Harvard Business School Case 812-062, October 2011. (Revised March 2013.)