Posts Tagged ‘david swensen’
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 [...]
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 [...]
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 [...]
David Swensen’s Fox News interview
Posted by: Michael Zhuang on: January 7, 2009
This is based on an interview David Swensen done on Fox News Network. 1. Have a strong decision-marking process Investing success requires sticking with decisions made uncomfortable by the variance of opinions. In his own words: Think carefully how it is that you are gonna allocate your assets and stick with it. Too many individuals [...]
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.
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