Gurley notes Yale model achieved 13% returns over 35 years by overweighting illiquid assets.
“Yale, I think they say had a 13% compounding return over thirty five years under David Swenson. He is known for the Yale model.”
Gurley questions if Yale model works when universally adopted, notes Yale itself selling $6B.
“What if everyone goes to 50% illiquid? Will it still work? I think that's a provocative question. But I think that's what happened for sure.”