Archive for the ‘conflict of interest’ Category
David Swensen on fund of funds
Posted by: Michael Zhuang on: January 17, 2010
Quoted from David Swensen’s interview with WJS … Fund of funds are a cancer on the institutional-investor world. They facilitate the flow of ignorant capital. If an investor can’t make an intelligent decision about picking managers, how can he make an intelligent decision about picking a fund-of-funds manager who will be selecting hedge funds? There’s [...]
Bloomberg: “Pimco plots asset strategy to mimic Yale without cash strain”
Posted by: Michael Zhuang on: September 3, 2009
Here is the second paragraph of the Bloomberg report: “The richest colleges beat market indexes in the decade through June 2008 by loading up on hard-to-sell assets such as private equity and real estate, while cutting stocks and bonds, a style pioneered by Yale University’s David Swensen. Pimco is refining the model to appeal to [...]
Why David Swensen calls funds of hedge funds “cancer”?
Posted by: Michael Zhuang on: June 7, 2009
“They are the cancer of the institutional investment world.” – David Swensen, Yale endowment CIO Would you consider forming a partnership with someone you don’t know, in which you would contribute the money and that someone would conduct a business that you don’t understand, and do the accounting as well? Most business owners would respond [...]
Swensen mocks mutual fund industry: it is a marketing industry
Posted by: Michael Zhuang on: April 2, 2009
In a recent interview with Yale Alumni Magazine, David Swenen had this dialog with the reporter. Yale Magazine: Unconventional Success delivered a scathing critique of the mutual-fund industry. You rightly pointed out that the vast majority of mutual funds charge high fees, trade too frequently, and under-perform the markets. How did the industry react? Swensen: [...]
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 [...]
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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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