Yale Sells Gold Stock

David Swensen, the long-time chief of Yale University’s endowment, is known for his hedge fund and private equity investments—the so-called Yale model is heavy on alternatives. But the portfolio he oversees also includes direct investments in securities.

Thus in 2009, the endowment owned 7.3% of Toronto-listed American Bonanza Gold Corp. That year the stock went down steeply and traded at a small fraction of its price today. Presumably Mr. Swensen bought it around the low point.

In late 2011 he sold it. Yale no longer owns American Bonanza Gold. Is this a sign Mr. Swensen is down on gold? But no such view is necessary to account for the sale. It could be simple profit taking by the  $19.4 billion endowment.

Looks like he sold near a high point several months ago. The stock has come down a bit since, though it remains several orders of magnitude higher than it was in 2009. Quite a trade for Yale.

Advertisements

Tags: ,

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: