Up and down again!
Jul/24/08 10:40 PM Filed in: 5 Investment
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Volatility is not much fun if you are looking for stability and consistent long term returns. Universities typically use volatility to rebalance their portfolios. In fact this rebalancing can reduce volatility and improve performance.
David Swensen wrote in one of his books, Unconventional Success, that Yale has been able to improve performance by over 1% due to their rebalancing Sotechniques.
