Yale University is cutting its hedge fund exposure and upping its investment in private equity.

The private research university, which has a $16.3 billion endowment fund, is decreasing its hedge fund allocation by 6% to 15%. Meanwhile, its private equity target has been raised to 26% from 21%.

The university released its portfolio rebalancing in an online report Thursday. A representative for the school declined additional comment.

The report anticipated private equity would outperform, noting alternative investing exploited market inefficiency. Private equity has earned more than 30% since the school started investing in the asset class in 1970.

Yale University investment head David Swensen has been a longtime advocate for alternative investing; championing it as superior to traditional asset management. The Ivy League school has the second richest endowment fund after Harvard University, which has $25 billion in capital.