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The last year's effort missed Harvard Management's own blended benchmark return of 1percentt, about what its neighbor, the Massachusetts Institute of Technology, managed with a pot about half the size.
That is about 4 percentage points above the annual benchmark return that Harvard would expect if it simply matched its target rate of return in each of the various asset classes in its portfolio.
Even the benchmark return the CEFC is to adopt is the equivalent of an average of the five year government bond rate, which has a yield today of just 2.8%.
Investable means that if you get fed up with your adviser you can get the benchmark return by buying funds that mirror it.
Investable means that you can dump the manager and get the benchmark return going forward simply by buying passively managed funds with low expenses that mirror the benchmark.
To calculate the benchmark return, we use the average daily log returns z b = 〈 z i 〉 of all the observed corporations.
Similar(49)
Say a fund earned an average 13% in a period when the benchmark returned only 10%.
A total yearly return of -5% in which the relevant benchmark was down 8% actually showed a much better performance by the manager than a 5% return in a year where the appropriate benchmark returned 7%.
Smith's chart of benchmark returns underscores the staggering realization that not a single category of stocks–except for the S&P Midcap 400 Index and the Wilshire REIT Index–have beaten the market averages since February 1999.
That's just the craziness of benchmarking returns.
This is important because if we recognized that a venture fund and a McDonald's are actually the same thing at some level, we'd start asking some really good questions, such as "which funds are best in customer satisfaction?" If by "customers" we mean LPs, that's just benchmarked returns, though the jury is still out on their satisfaction levels.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com