> Not in real terms it doesn't. When was the last time typical moderate risk investments had long-term returns more than 5% above inflation? The asset allocati

> Not in real terms it doesn't. When was the last time typical moderate risk investments had long-term returns more than 5% above inflation? The asset allocation for a $100MM+ endowment FBO educational institution typically includes about 10% PE, 5% VC, and 20-25% in alts (hedge funds, derivatives, long/short plays, etc). These aren't even close to "typical moderate risk" investment vehicles. And the bigger the endowment, the bigger the percent allocation to those types of investments. For example, a super endowment like Harvard probably has closer to 50% of the portfolio in alternative strategies.