Although I continue to hold a substantial position in TREA, I have to note that Pete is incorrect when he states that Swensen recommends "20% to TREA."

Swensen identifies six core asset classes in his book, Unconventional Success (much discussed at this and other sites shortly after its publication in 2005).

What Swensen did recommend in the book is a 20% holding in "real estate," about which he comments: "Exposure to real estate contributes diversification to the portfolio with lower opportunity costs than fixed-income investments." (See pages 33-34 of his book).

Although Swensen has subsequently tinkered with his "lazy portfolio," he has yet to remove the 20% allocation to real estate investments which, of course, include REITS,  possibly REOCs, and maybe even a more expansive notion of "real estate" to include, say, TIAAs recent investment in farmland  .  Bob U.