Asset Allocation is one of the key portfolio construction decisions as it determines investment returns over the long term. Depending on risk-return profiles, investors in Alternative Investments can decide between different strategies – Private Equity, Venture Capital, Private Debt, Secondaries, Funds of Funds, and so on, each with its own characteristics. The data below covers…

Investment professionals are closely tracking investment performance and movements in Asset Allocation of major US universities’ endowment funds, especially so-called Super Endowments of Yale and Harvard. These funds have consistently achieved superior investment returns while managing the drawdown risk. University Endowment Funds have a long investment horizon, and diverse portfolio with exposure to multiple assets,…

In comparison to historical levels, how high are the current interest rates? If we look 700+ years back, present interest rates are not so high: Academic paper by Schmelzing reconstructs interest rates from archival, printed primary, and secondary data sources. Loans to kings were quoted at 18%-35%, similar to the current credit card or consumer…

Private Equity funds performance over a longer period of time – i.e. 5Y, 10Y, 15Y, and 20Y years. KKR in their mid-year report calculates Private Equity to return 11.9% p.a. in the next 5 years. PitchBook data shows Private Equity to perform well over long-term horizons: 5Y returns / IRR – 17.85% 10Y – 15.13%…

“Nobody ever got fired for buying IBM” – there was an old saying that indicated IBM was a reliable and secure choice for investors. Looking back at history, the largest Top 10 positions are always changing. IBM’s relative position started to decline in 1990, but still managed to remain in the Top 7 position in…