Yale University Investments Office: For changing: Shift to emerging economies to take advantage of inefficiencies Dont chase the

market pe market is becoming overheated Reduce due to contrarian view

Dont change: Stay invested for long term as when you pull your money out its hard to come back in when the market is better PE industry is based on relations Too much money chasing too little firms no longer valid as more supply of good portfolio firms

Diversification benefit Asset class allocations Asset class that give abnormal returns driven by inefficiencies (information asymmetry) Calculated risks Incentive alignment agency costs and moral hazards