Back to Articles

Yale’s CIO is Troubled by Low Volatility

29 November 2017

Bloomberg summarizes an interview with David Swenson, CIO of the Yale endowment, regarding his concern with the persistence of low-volatility and the near-term prospects for lower market returns. Swenson is “warning university officials to expect returns, as little as 5% annually, which would be down from previous assumptions of 8.25%.” Swenson states his concern is centered on valuations and that uncorrelated assets (i.e. absolute return, cash and short-term bonds) will assist in any severe corrections.