Be Leery Of Hedge Funds

The investment successes of the Yale Endowment led many other endowments, foundations and even high-net-worth individuals to consider adopting the so-called “Yale Model.” The model included a focus on alternative investments and attempts to capture the liquidity premium available in illiquid investments, such as private equity and hedge funds.

In his new book, Asset Management: A Systematic Approach to Factor Investing, author Andrew Ang includes two chapters that take an in-depth look into hedge funds and private equity. While I recommend that investors read the entire book, today we’ll review Ang’s take on hedge funds. We’ll follow that with a separate post covering his treatment of private equity.

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