Archive for the ‘asset allocation’ Category
Harvard Endowment adds to Russia, Mexico and India exposure
Posted by: Michael Zhuang on: November 20, 2009
Harvard University Endowment significantly increased its holding of Market Vector Russia, iShare Mexico and iPath India in third quarter of 2009. Table: Top 10 holdings in Harvard University Endowment’s public portfolio Rank Names 9/30/09 (x1000sh) 6/30/09 (x1000sh) Change 1 iShares E. Mkt 10298 9712 +586 2 iShares Brazil 3355 3294 +61 3 iShares China 4962 [...]
Quotes of David Swensen from his Financial Times interview
Posted by: Michael Zhuang on: November 4, 2009
On his anticipation of the crisis We were absolutely aware of potential issues. And that was months before Bear Stearns. That said, we weren’t prepared for the magnitude of the crisis, or its duration.
David Swensen revises asset allocation for individual investors
Posted by: Michael Zhuang on: March 25, 2009
In his book Unconventional Success: A Fundamental Approach to Personal Investment, Swensen recommends the following allocations, for individual investors who want a “well-diversified, equity-oriented portfolio”: 30% Domestic stock funds 20% Real estate investment trusts 15% U.S. Treasury bonds 15% U.S. Treasury inflation-protected securities 15% Foreign developed-market stock funds 5% Emerging-market stock funds In an interview [...]
What (not) to learn from Harvard and Yale endowments’ investment approach
Posted by: Michael Zhuang on: March 20, 2009
University endowments are important institutions. They play a critical role in maintaining the academic excellence of the universities that rely heavily on their income. Recently, these endowments have drawn much attention because of their superior investment returns compared to other institution investors, such as investment banks and insurance companies. There is much diversity among university [...]
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.
David Swensen portfolio for small investors
Posted by: Michael Zhuang on: October 27, 2008
In his book “Unconventional Success: A Fundamental Approach to Personal Investing,” David Swensen prescribes for retail investors an asset allocation markedly different from his management of Yale Endowment. Domestic Equity (30 percent) – Stocks in U.S.-based companies listed on U.S. exchanges. Emerging Market Equity (5 percent) – Stocks from emerging markets across the globe. Brazil, [...]
Learning from Yale and Harvard Endowments
Posted by: Michael Zhuang on: September 17, 2008
Wall Street Journal headline: “Harvard Endowment Returned 8.6%” In light of the events of the last few weeks when financial companies collapsed in rapid succession, an all-weather portfolio is what all of us need. Yale and Harvard University endowments have portfolios that do well in both good and bad times. You’d expect these smart people [...]
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.
You may also get his monthly newsletter, or join his Facebook page for regular wealth management insights.
