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Yale Endowment Model Thrives as Swensen, Proteges Post Top Gains

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The strongest university endowment returns so far this year are from Yale University and managers who once worked there. The one thing tying the best-performing institutions together: David Swensen, the longtime investment chief at Yale. He pioneered a model that favors a longer investment horizon and committing capital to illiquid investments such as hedge funds and private equity that often provide higher returns. “Yale has a global approach and they have great managers and there are times when they perform unusually well,” said Jonathan Hirtle, chief executive officer of Hirtle Callaghan & Co., which is based near Philadelphia and manages more than $25 billion for wealthy...

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