While Macalester has adopted an asset allocation framework which focuses on three broad asset categories, the endowment portfolio invests in a variety of investments typically termed “alternative investments.” These investments represent “alternative” investment approaches to traditional stock and bonds.

Included in this category are illiquid private partnership interests in venture capital and leveraged buyout, as well as real estate, timberland, agriculture, and energy-producing entities. We also include publicly traded real estate securities (REITS), and semi-liquid holdings with hedge fund managers who engage in relative value trading strategies. These investments typically have global equity-like returns with relatively low return volatility, albeit with reduced liquidity.