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Insight into Yale’s Q2 2024 Investment Moves and Strategic Decisions
Yale University (Trades, Portfolio), renowned for its strategic investment approaches, recently disclosed its 13F filing for the second quarter of 2024. The Yale Investment Office, which is responsible for managing the university’s endowment, focuses on achieving high inflation-adjusted returns to support both current and future university needs. Their investment strategy combines academic theory, particularly mean-variance analysis, with practical market judgment. This approach is guided by the insights of Nobel laureates James Tobin and Harry Markowitz, who contributed to these theories at Yales own Cowles Foundation.
Summary of Sold Out Positions
During the second quarter of 2024, Yale made significant changes to its investment portfolio, including the complete exit from four holdings:
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Vanguard FTSE Emerging Markets ETF (VWO): The sale of all 342,000 shares had a -35.77% impact on the portfolio.
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Coinbase Global Inc (NASDAQ:COIN): The liquidation of all 37,612 shares resulted in a -24.97% impact on the portfolio.
Portfolio Overview
As of the second quarter of 2024, Yale University (Trades, Portfolio)’s investment portfolio was highly concentrated, with 100% of its holdings in the iShares Core S&P Total U.S. Stock Market ETF (ITOT). This strategic concentration indicates a significant shift in their investment approach, focusing solely on broad U.S. stock market exposure.
The portfolio’s industry allocation shows a notable absence of diversification across the usual 11 sectors, focusing entirely on one sector. This move aligns with Yale’s strategy of adjusting its risk and return profile to meet specific endowment goals.
Yale’s recent portfolio adjustments reflect a strategic realignment that could be based on their market outlook or specific endowment needs. The complete exit from significant positions like the Vanguard FTSE Emerging Markets ETF and Coinbase Global Inc suggests a shift towards more conservative, broad-market U.S. investments, possibly indicating a strategic response to global market volatility or a reevaluation of risk management objectives.
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This article first appeared on GuruFocus.