Understand the role of alternative investments in portfolio construction. Explore allocation strategies used by leading endowments.
Adjust the inputs. See the difference alternatives make.
Projected Value in 20 Years
$4.0M
from $1M initial investment
Investment
Time Horizon
Select Allocation Strategy
annualized returns over 20 years
Yale's endowment outperformed traditional portfolios for decades. Their edge? 45% allocation to alternatives. A disciplined 3-5% is where most individual investors start.
Same starting point. Different allocation strategies. 20 years later.
Illustrative projections. Assumes stocks 10%, bonds 5%, alternatives 12% annual returns.
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