For many years, the investment model devised by Yale University has inspired institutions to diversify out of their traditional mix of equity and bond strategies. So much so that David Swensen, the endowment fund’s chief investment officer, became a guru and his book Pioneering Portfolio Management a bestseller.

During the credit crisis, however, the US university came unstuck when its alternative assets were undermined by an evaporation of liquidity. Last year, the 2% growth in the size of the Yale endowment was dwarfed by several rivals, including Harvard.