Liquidity is important regarding an emergency fund should you experience a setback like a sudden job layoff, a medical emergency or an unexpected issue like a car repair.
Swensen s investment principles were based on the power of diversification to minimise risk. His approach revolutionized the way institutions invested, forcing them to change their narrow focus on marketable securities to adopting a diversified approach across a variety of unusual assets, including natural resource funds, private equity, venture capital and absolute return strategies.