The term refers to a specific investment strategy associated with Cambridge University’s endowment fund. It describes an approach focused on long-term value investing, often characterized by a patient and selective acquisition of assets. This strategy typically involves identifying undervalued companies or assets with strong potential for future growth and holding them for extended periods. For example, the endowment might invest in a private equity fund specializing in turnaround situations or purchase a stake in a publicly traded company undergoing significant restructuring.
This approach is noteworthy due to its potential for generating substantial returns over time and its alignment with the long-term investment horizon of an endowment. By focusing on fundamental analysis and resisting short-term market pressures, this strategy aims to capitalize on inefficiencies and create enduring value. Historically, this type of investing has contributed significantly to the growth of Cambridge University’s financial resources, enabling it to support its educational and research missions.
