Yale endowment model books

David swensen made yale fabulously rich and changed. Yale universitys endowment, the worlds second largest, grew 12. Its really the yale model, since it was yale and its longtime endowment chief, david swensen, who led the way. Our updates describe recent performance, address investment issues, and highlight topics relating to the university. Yale endowment return ranks last in ivy league bloomberg. The yale model, sometimes known as the endowment model, was developed by david swensen and dean takahashi and is described in swensens book pioneering portfolio management. Theeasily misunderstood yale model institutional investor. Swensens legend was made with the popping of the dotcom bubble. The book is essentially a guide to yale s model, which swensen wrote reluctantly, according to elliss introduction. Why you should still invest like yale seeking alpha.

Beyond acadamia, fund managers and savvy individual investors are. But i guess the harvard name has more global cachet, so tett included it. Beyond acadamia, fund managers and savvy individual investors are taking notice of the investment. As a result, his investment style has been emulated by many other university endowments. In the subsequent three decades, he has produced superlative returns including a 20year winning streak of positive returns from 19882007.

David swensen took over management of yale s endowment in 1985. With the markets collapse, however, some have begun to question whether the yale model works as advertised. Why the yale model of investing doesnt work for everybody. Each year, the investments office distributes a press release on investment performance and publishes an update on the endowment. It consists broadly of dividing a portfolio into five or six roughly equal parts and investing each in a different asset class. During yale s fiscal year ended in june 2000, when the nasdaq hit the eras peak, the endowment s portfolio returned 41%. In the hierarchy of institutional investors, you wont find a more competitive group than college endowments. The materials provided through these links are made available by the yale investments office for. Swensen is the chief investment officer of yale university and the bestselling author of pioneering portfolio management. Shouldnt you be investing like yale in an endowment like model. His advice to the individual investor is really good, backed by plenty of academic research.

The riskadjusted returns and strategies that we can implement on your behalf using an. The yale model is a curse for institutional funds of all types which ultimately hurts the beneficiaries. Yale s money guru shares wisdom with masses in the 21 years hes managed yale universitys investments, david swensen has made an average. He serves on the boards of tiaa, the brookings institution, carnegie institution, and hopkins school. Imitation, of course, is the sincerest form of flattery. Theyre in constant competition with one another and the markets. Learn about what has made david swensens investment strategy for yale s endowment so successful over the years. I enjoyed this book from david swenson from the yale endowment. Its almost like a bizarre finance version of dukenorth carolina in basketball or michiganohio state in football.