Institutions like Harvard and Yale famously established the Endowment Model, a strategy that led the pack for decades by heavily allocating capital to private assets within advanced economies. Because this approach was so effective at generating returns, it naturally drew in a massive number of followers. However, as the sector has become saturated in recent years, the competitive advantage of this model has diminished. It is now more difficult to achieve superior results with this method than it is with a classic public portfolio. The graph provided below offers a visual representation of this trend.

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