Yale Strategy Leaves Rich Stuck as Salient Curbs Withdrawals

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Salient Partners LP, whose $3.3 billion Endowment Fund mimics the strategy of sophisticated institutions like Yale University and the Ford Foundation, is limiting withdrawals after clients pulled more than $1 billion this year amid lackluster returns.

Instead of allowing investors to redeem at their discretion, the fund will return 5 percent of assets as of Dec. 31, according to a letter to clients obtained by Bloomberg News. Clients who want to keep their money in the fund may be able to reinvest the cash they receive.