This article is the first of a series that provides ongoing
analysis of the changes made to Yale Endowment’s US stock portfolio on a
quarterly basis. Yale Endowment had 6.7% of its assets allocated to US equities
as of 06/30/2011. The total value of the endowment is just shy of $20B, about
15% below the all-time high of $23B reached in 2008. It’s ten-year performance
of over 10% places it in the top one percent of large institutional investors. As
of Q4 2011, the US long portfolio had $198.83M invested and that has come down
over 35% to $128.39M as of Q1 2012. The relatively large shift in allocation
indicates a bearish bias towards US equities as an asset class. The portfolio
is very concentrated with just ten issues and the number of equities did not
change this quarter – the fund sold out of three positions but added three
others.
The spreadsheet below highlights changes to Swensen's US
stock holdings in Q1 2012:
Below is a summary of his new stakes:
Linkedin Corporation
(LNKD): LNKD is a 2.25% stake that was established this quarter when the
price-per-share varied between $61 and $104. LNKD had the biggest internet IPO
since Google (2004) on May 19, 2011 and its stock promptly doubled from its IPO
price of $45. The stock saw a sell-off following lockup expiration on November
19, 2011 and it traded in the $59 range in late November. Since then, the stock
has produced a stunning return of over 85% in the last six months – the stock
trades around $110 currently.
Pandora Media (P): P
is a very small 0.7% stake that was established this quarter when the
price-per-share varied between $10 and $15. P is another internet stock that
IPOed mid-last-year (June 15, 2011). The stock fell below $10 following lockup
expiration in December and it currently trades around the same price-range.
Following a weak Q4 report and anemic forecast on March 7, 2012, the stock fell
25% but has since recovered a little.
Hallador Energy
(HNRG): HNRG is a very small 0.3% stake that was established this quarter
when the price-per-share varied between $8.7 and $10.83. The stock currently
trades at around $7.8. HNRG is a small-cap stock engaged in the production of
steam coal from a single mine in Western Indiana. The allocation is very small
to indicate a bullish bias.
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