Yale University Chief Information Officer David Swenson is betting on the cryptocurrency market and that has investors excited, according to a recent article on CryptoNews.com.
Swenson is Yale’s chief investor and he’s become one of the most respected, influential investors in the world due to his successes on behalf of the university, where he has often been compared to legendary investor Warren Buffett.
And he’s now lending a ton of credibility to the cryptocurrency market with his latest investments into two crypto-focused venture funds, according to the article.
The first investment is reportedly in the new $300 million crypto fund by Andreessen Horowitz, a Silicon Valley powerhouse.
The second investment is reportedly $400 million in Paradigm, a new crypto fund founded by Coinbase co-founder Fred Ehrsam, former partner at venture capital giant Sequoia Capital Matt Huang, and former Pantera Capital investor Charles Noyes.
The reason the news is so significant is largely due to Swensen’s track record as one of the most consistent outperformers in the world of professional money management. He has successfully managed Yale University’s USD 29.4 billion endowment fund since 1985, when the fund was just over USD 1 billion.
Wall Street banker Mike Novogratz tweeted his take on the news on Friday, saying “bitcoin is a store of value” while calling Swenson “the most influential investor in the world” and “the alpha bull of the herd.”
This is really big news. David Swenson the most influential investor in the world. By making this investment he just said the bitcoin is a store of value. He’s the alpha bull of the herd. Congrats @_charlienoyes @FEhrsam https://t.co/uUsz4MOvwI
— Michael Novogratz (@novogratz) October 5, 2018
According to the article, Yale manages the second-largest college endowment in the U.S., behind only Harvard, and Swenson’s investments there have returned an average annual return of about 12 percent.
Meanwhile, as recent study from Yale University showed, cryptocurrencies may generate higher risk-adjusted returns than stocks and other assets traditionally thought of as “safer.”
Editor’s note: What are your thoughts on investing in crypto? Share your investment strategies in the comments below.