Asia Times Online :: Asian news and current affairs: "the reported implosion of the Harvard and Yale endowments. For years, these giant funds were held up as proof that superior intelligence was the ticket to excess returns. During the 10 years through 2007, Harvard and Yale produced compound annual returns of 15% and 17.8% respectively, far better than the market, the average endowment or the average hedge funds - only to blow up in 2008 by frightful proportions not yet released.
According to a recent study [1], the 'super endowments' sailed past their peers by loading up real estate, commodities, and 'private equity', precisely the sectors that underwent necrosis this year. Private equity is the subprime version of corporate finance, acquiring non-public companies with a minimum down payment and the maximum of debt."
Monday, January 12, 2009
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