Value Investing with Legends · Friday, October 30, 2026
Jim Engle explains how John W. Bristol & Company manages institutional portfolios using a traditional equity and fixed income mix rather than complex illiquid models like the Yale model, avoiding liquidity risks while delivering alpha derived roughly half from stock selection and 30% from asset allocation.
“The Yale model... ignores liquidity risk. And for some institutions, Liquidity is not a factor. For others, it's a big factor.”
“The alpha, although, according to Dr. 2, and this is rough, about half the alphas come from stock selection, About 30% of the alphas come from asset allocation changes.”