Overcoming challenges in investment approach of the 'endowment model'

The disappointing losses suffered by investors during the 2008 credit crisis and its aftermath have raised questions about the validity of the investment approach that has become known as "the endowment model." This approach remains as valid as ever, but not the way it's been implemented. The approach is called the endowment model because endowments were among the first to increase their allocations to alternative investments to gain the risk/return characteristics and diversification benefits that those investments are intended to deliver.