Yale University posted a 20.2-percent return on its investments for the year ending June 30, boosting the nation's second-biggest college endowment to $23.9-billion, the Hartford Courant and The Wall Street Journal report. In its 29th year under investment chief David Swensen, the Yale fund outperformed comparable institutions such as Harvard, Stanford, and Dartmouth.
Announcing the results Wednesday, the university reinforced its commitment to alternative investments, with private equity and hedge funds making up 51 percent of its portfolio. Mr. Swensen pioneered an institutional investment strategy, now known as the "Yale model," that de-emphasizes stocks and bonds in favor of a higher-risk mix. Yale reported gain a 12.5-percent return last year and has averaged 13.9 percent over the past two decades.