Archive for February 2009
Swensen decries “fee-ing frenzy” by financial firms
Posted by: Michael Zhuang on: February 27, 2009
David Swensen: Avoid the fee-ing frenzy! A woman banks at Wachovia. Let’s call her Marion. When Marion needs to rollover her 401(k) into an IRA account, she naturally asks a Wachovia financial advisor for help. He helps her open an account and recommends she buy the Evergreen Asset Allocation Fund (EAAFX). Is there anything wrong [...]
David Swensen answers criticism of the Yale Model
Posted by: Michael Zhuang on: February 23, 2009
The Yale model is under intense criticism that it doesn’t work as advertised in the current market condition. Here is David Swensen‘s response in an interview with Seth Hettena, Special to ProPublica. The first thing I’d say is it’s too short a time period over which to judge. If you want to have a fair [...]
The Yale Model asset allocation
Posted by: Michael Zhuang on: February 17, 2009
Once upon a time, the Yale University Endowment invested like the rest of us, in just two asset classes: US equity and fixed income. After taking over the reins in 1987, David Swensen, the chief investment officer of Yale Endowment, moved aggressively into non-traditional and often illiquid asset classes like foreign equity, absolute return, real [...]
A David Swensen lecture in Yale University
Posted by: Michael Zhuang on: February 3, 2009
David Swensen, Yale’s Chief Investment Officer and manager of the University’s endowment, discusses the tactics and tools that Yale and other endowments use to create long-term, positive investment returns. He emphasizes the importance of asset allocation and diversification and the limited effects of market timing and security selection. Get my white paper: The Informed Investor: 5 [...]
Author
Michael Zhuang is principal of MZ Capital, a fee-only independent advisory firm applying David Swensen's insights for clients. He is also a regular contributor to Morningstar Advisor. To use his wealth management services, schedule a discovery meeting (phone call) with him.
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