FYI: In the 1980’s and 1990’s, private equity and hedge fund strategies were new and novel. They were the province of only the most sophisticated investors and very little understood. They were small, relative to public equity mutual funds, and their methods for making money were unique.
As such, they were incredible places to put money. The Yale Endowment’s David Swensen rode both “asset classes” to enormous gains and, as can be expected, the word got out. As Warren Buffett says, “Nothing recedes like success.” Swensen wrote a book about his “endowment model” and a revolution was triggered. Suddenly, every large pool of assets was on the hunt for alternative strategies and private funds.
Regards,
Ted
http://thereformedbroker.com/2016/08/17/nothing-recedes-like-success/
