Steep investment losses have caused painful cutbacks at some of the nation's best-known universities over the most recent fiscal year and have prompted questions about whether their endowments are taking too much risk, reports the New York Times. But as the schools disclose their numbers, the managers of these endowments are indicating their continued support for a diversified portfolio full of alternative investments like hedge funds, private equity, and real estate--the very things that have caused so much trouble. This portfolio strategy is sometimes called the Swensen model, after David F. Swensen, who heads the Yale endowment. On Sept. 22,...

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