Opinion | Why individual investors should avoid alternative investment funds
You should invest in a PE, VC or hedge fund only if you can manage such a fund
Most institutional investors (large university endowments, pension funds etc.) across the world have tried to imitate the investment success of David Swensen, the chief investment officer of the Yale University endowment. Swensen’s success is because he invested in alternative investment funds (AIFs)—private equity (PE) funds, venture capital (VC) funds and hedge funds. But Swensen insists that individual investors should avoid AIFs. Let’s understand why.