Interesting news. The key here is how they plan on allocating the hedge fund and private equity portions. You already know what I think regarding those!
Bloomy article here:
Pimco Plots Asset Strategy to Mimic Yale Without Cash Strain
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Great read on AQR and their new momo funds.
One possibility for a more liquid hedge fund alternative might be something like Putnam's new mutual fund Putnam Absolute Return 700 (PDMAX), which is supposed to return 700bps over inflation. Based on a few months of returns it looks pretty smooth compared to other market neutral type mutual funds. It appears to hold roughly 50% cash, 40% investment grade bonds, and 10% stocks. Blurb:
“The fund combines two separate investment strategies. The beta strategy consists of a globally diversified asset allocation strategy. The alpha strategy involves the potential use of various 'overlay' strategies. These consist of diverse active trading strategies…market inefficiencies…”
Meb looks like El-Erian read the autograph copy of your book that you sent him…….LOL
Meb looks like El-Erian read the autograph copy of your book that you sent him…….LOL