I have been looking for a good book about asset allocation, and i decided to pick up david swensen s book, unconventional success. Many even consider him the babe ruth of endowment fund managers. In this video, origins michael episcope explains what has made swensens investment strategy for the yale endowment so successful over the years. David swensen is a clear runner up for being one of the good guys in investing. His advice to the individual investor is really good, backed by plenty of academic research. Yales david swensen and nprs chris arnold will offer. David swensen should undoubtedly be regarded as a superinvestor. In the subsequent three decades, he has produced superlative returns including a 20year winning streak of positive returns from 19882007. David swensen, the chief investment officer at yale university, has enjoyed great success. For yale s money man, a higher calling the new york times. Given his incredible track record, many individual investors have wanted to follow his investing advice for. Interview with david swensen yale school of management. David swensens guide to sleeping soundly features yale. The universitys chief investment officer for nearly 35 years, swensen has raised an entire generation of endowment cios in his image, and explained yales strategy to the world in his hit book.
Pioneering portfolio management by swensen, david f. But david swensen himself, yales cio, wrote the following in yales 2017 annual endowment report. The money management gospel of yales endowment guru a portrait of david swensen at yale. Jan 23, 2019 the yale model i have been looking for a good book about asset allocation, and i decided to pick up david swensens book, unconventional success. Well start by taking a look at how it has performed. He has addressed how investors should set up and manage their investments in his book, unconventional success. Swensen is the chief investment officer of yale university and the bestselling author of pioneering portfolio management. Jul 31, 2019 the universitys chief investment officer for nearly 35 years, swensen has raised an entire generation of endowment cios in his image, and explained yales strategy to the world in his hit book. Nov 06, 2016 the money management gospel of yales endowment guru a portrait of david swensen at yale. The dividend yield of david swensen yale endowment portfolio is the result of the following asset allocation. Swensen, chief investment officer of yale university, fanned the flames of enthusiasm in his bestselling book, pioneering portfolio management free press, 2000. He took over yale s endowment in 1985 and achieved a return of 16.
David swensen portfolio, asset allocation with a punch. Central in the yale model is broad diversification and an equity orientation, avoiding asset. The man behind that investment success is david swensen, one of the. David swensens investment strategy origin investments. Dec 14, 2017 ritger and vkm discuss david swensen, the iconic head of the yale endowment and how to apply his approach to managing your own portfolio. David swensen department of economics yale university. Homepage membership levels membership data coverage complete stock list founders message the book value investing forum podcast free trial screeners value screens. Under his stewardship during the past 32 years, the yale endowment generated returns of. A fundamental approach to personal investment when david swensen trades, portfolio took over the yale university endowment fund, the fund provided 10% of the universitys operating funds. The legendary chief investment officer of the yale endowment the best performing of. This model portfolio is taken from unconventional success by david swensen. The yale model swensen has been advising the yale endowment since 1985, having earned his ph.
The david swensen yale endowment portfolio granted a 2. As swensen would recount in a talk at the 2018 yale reunion, the graduate presenting him the book had told him, david, you always read. David swensen, yale universitys chief investment officer, this week underscored the importance of environmental sustainability in the universitys investment choices. About david swensen david swensen took over management of yales endowment in 1985. Ive done that for 33 years, and its been a pretty good run. Mar 08, 2019 about david swensen david swensen took over management of yales endowment in 1985. He has been the chief investment officer at yale university since 1985. David swensen, yales chief investment officer and manager of the universitys endowment, discusses the tactics and tools that yale and other endowments use to create longterm, positive investment returns. David swensen is manager of yale universitys endowment fund. Mar 02, 2015 david swensen, manager of the yale endowment, recommended this portfolio in his book unconventional success. Jul 20, 2007 david swensen, the manager of the yale university endowment, has posted such consistently strong portfolio returns over the years that he could sign off his annual reports with a similar close. As a result, his investment style has been emulated by many other university endowments. The swensen portfolio consists of six core asset class allocations us equity.
At yale, where he produced an unparalleled twodecade investment record of 16. David swensen made yale fabulously rich and changed. David swensen is author of the bestselling unconventional success and manager of yale universitys endowment fund, where hes generated phenomenal returns in the range of 16% annually the past. While buffett appropriately recognizes the challenges investors face in manager selectionperhaps most notably that the vast majority of managers who attempt to outperform fail after taking into account fees and expenseshis conclusion. Swensen born 1954 is an american investor, endowment fund manager, and philanthropist. Jan 04, 2019 david swensen, investment manager of the yale university endowment fund, has addressed how investors should set up and manage their investments in his book, unconventional success. How to invest like yales david swensen seeking alpha. In the years since the nowclassic pioneering portfolio management was first published, the global investment landscape has changed dramatically but the results of david swensen s investment strategy for the yale university endowment have remained as impressive as ever.
If only they had david swensen investing their money. It was a friday morning in early march, and david swensen was furious. Sep 11, 2019 as swensen would recount in a talk at the 2018 yale reunion, the graduate presenting him the book had told him, david, you always read from keynes as if you were reading from the bible. As swensen would recount in a talk at the 2018 yale reunion, the graduate presenting him the book had told him, david, you always read from keynes as if you were reading from the bible. D from the school, he coined his investment philosophy the yale model. Year after year, yale s portfolio has trumped the marketplace by a wide. He took over yales endowment in 1985 and achieved a return of 16. David swensen, the manager of the yale university endowment, has posted such consistently strong portfolio returns over the years that he could sign off his annual reports with a similar close. British portfolios can ger usa asset allocation stocks domestic 30% total stock market uk international 15% world total stock market 5% emerging markets bonds 30% intermediate term gilts uk real assets 20% reits usa. The money management gospel of yales endowment guru the. Description of david swensens yale endowment portfolio. Swensen reaffirms climate change as a guiding factor in yale. During his tenure, it has achieved an annual compound growth rate of 16. Econ 252 2008 lecture 9 guest lecture by david swensen.
Ritger and vkm discuss david swensen, the iconic head of the yale endowment and how to apply his approach to managing your own portfolio. The david swensen asset allocation value stock geek. The yale model, sometimes known as the endowment model, was developed by david swensen and dean takahashi and is described in swensen s book pioneering portfolio management. In the years since the nowclassic pioneering portfolio management was first published, the global investment landscape has changed dramatically but the results of david swensens investment strategy for the yale university endowment have remained as impressive as ever. David swensens portfolio from unconventional success. It consists broadly of dividing a portfolio into five or six roughly equal parts and investing each in a different asset class. Under his leadership, yales endowment has generated an astonishing 20 consecutive years of positive returns, from 1988 to 2008. David swensen s portfolio from unconventional success. This is the portfolio david swensen manager of the yale endowment recommends for individual investors in his book unconventional success.
The swensen portfolio consists of six core asset class allocations. Few would have anticipated such an outcome when swensen s book was published in. May 04, 2020 david swensen is a clear runner up for being one of the good guys in investing. Keep it simple, says yales top investor the new york times. Swensen reaffirms climate change as a guiding factor in. As mentioned before, swensen is not a personal financial advisor, but is a respected institutional money manager who currently runs the yale endowment. I enjoyed this book from david swenson from the yale endowment. David swensen, manager of the yale endowment, recommended this portfolio in his book unconventional success.
Swensen, who has run the yale endowment since 1988, relying on a complex strategy that includes investments in hedge funds and other esoteric vehicles. Under his stewardship during the past 27 years the yale endowment generated returns of. Sep 07, 2014 david swensen, investment manager of the yale university endowment fund, has addressed how investors should set up and manage their investments in his book, unconventional success. Lets take a look at how david swensen has constructed a high performing portfolio that takes the best of this thinking from the yale endowment model. For yale s money man, a higher calling david swensen calls his running of the yale endowment a labor of love. Generating astronomical annual returns of 28% in 2007,2 as compared to the average 21. For the past twentythree years, david swensen has continuously proven himself to be an innovator and leader in the world of endowment investing as chief investment officer cio at yale university. Swensen recommends that investors should select not for profit mutual fund companies such as vanguard or tiaacref to. David swensen, investment manager of the yale university endowment fund, has addressed how investors should set up and manage their investments in his book, unconventional success.
Asset allocation 30% total stock market15% international stocks5% emerging markets30% intermediate bonds. He serves on the boards of tiaa, the brookings institution, carnegie institution, and hopkins school. In the subsequent three decades, he has produced superlative returns including a 20year winning streak of. 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. Its a high risk portfolio and it can be replicated with 6 etfs. David swensens success as yales endowment fund manager is well known. Jun, 2019 but david swensen himself, yales cio, wrote the following in yales 2017 annual endowment report. David swensen narrative by sydney finkelstein based on. We backtest the portfolio with the recommended 7030 stockbond split and modify. The legendary chief investment officer of the yale endowment the best performing of its kind over the last 20 years. May 03, 2017 david swensen took over management of yales endowment in 1985.