Illustration by 731; Photos: Yale; Wiki Commons
The Big Take
Yale’s Famed Investing Model Falters at a Fraught Time for Colleges
Many copied the Ivy League school’s bets on private equity and other illiquid investments. Now plain old stocks and bonds are outperforming.
Jagdeep Singh Bachher, who oversees the University of California system’s investments, did something quietly revolutionary seven years ago.
He shifted a small piece of the schools’ endowment money away from the typical choices: costly and complicated private equity, venture capital and hedge funds. Instead he invested in old-fashioned stocks and bonds, through index funds that charge next to nothing.