In his 14 years as Yale’s chief investment officer, David Swensen has propelled the university’s investment portfolio into the top one per cent of institutional funds. To be sure, Yale CIO David Swensen believes most institutions and the his updated edition of Pioneering Portfolio Management provides a. Reviewing Swensen’s Pioneering Portfolio Management, David Swensen, release date:Sep 23,

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No one can fail to find value here. He is notable for inventing The Yale Model which is an application of modern portfolio theory. Largely by focusing on nonconventional strategies, including a heavy allocation to private equity, Swensen has achieved an annualized return of pioneeriing Visit our Beautiful Books page and find lovely books for kids, photography lovers and more. Conventional investing too often leads to buying high and selling low.

Pioneering Portfolio Management: An Unconventional Approach to Institutional Investment

Institutions need to portfoluo a policy that outlines assets allocations and then the discipline to do regular rebalancing of the portfolio to maintain allocation targets. He spent a full two pages running Jim Cramer through th Very illuminating book – it gave a great macro overview of how university endowments should think about their portfolios, pioneeriing terms of balancing the decisions of what percent of the endowment should be spent each year versus what the portfolio should be invested in to ensure preservation of purchasing power.

In every equity position, public or private, management at least occasionally pursues activities providing purely personal gains, directly damaging the interests of shareholders. He offers penetrating insights from his experience managing Yale’s endowment, ranging from broad issues of goals and investment philosophy to the strategic and tactical aspects of portfolio management.

Any student of markets will davld from Pioneering Portfolio Management.

Pioneering Portfolio Management : David F. Swensen :

The wedge between principal goals and agent actions causes problems at the highest governance level, leading to a failure to serve the interests of a perpetual life endowment fund. Aside from the appeal of the eleemosynary purposes that endowments serve, the investment business contains an independent set of attractions. An Unconventional Approach to Institutional Investment.


This book is not yet featured on Listopia. Establishing and maintaining an unconventional investment profile requires acceptance of uncomfortably idiosyncratic portfolios, which frequently appear downright imprudent in the eyes of conventional wisdom.

Sep 05, Bowen Zhong rated it really liked it. Differences in interest between fund beneficiaries and those responsible for fund assets create potentially costly wedges between what should have been and what actually was.

Reviewing Swensen’s Pioneering Portfolio Management –

The alternative of trying to pursue active strategies on-the-cheap exposes assets to material danger. Favorite quote from the book: By relying on nonconventional assets, including private equity and venture capital, Swensen has achieved a remarkable annualised return of The costly game of active management guarantees failure for the casual participant. Other significant davd include fidelity to investment principles and maintenance of an appropriate organizational structure.

Apr 14, Akhil Jain rated it really liked it. Trust is more important than flash-in-the-pan success. Description In his fourteen years as Yale’s chief investment officer, David Swensen has revolutionised management of the university’s investment portfolio.

Is it intended to last forever, or is it intended on having a set lifetime? Now, this acknowledged leader of fund managers draws on his experience and deep knowledge of the financial markets to provide a compendium of powerful investment strategies.

Institutions seek high risk-adjusted returns, while outside investment advisors pursue substantial, stable flows of fee income. First half is very good explanation of diversified investing and asset allocation.

Reviewing Swensen’s Pioneering Portfolio Management

We’re featuring millions of their reader ratings on our book pages to help you find your new favourite book. Playing follow-the-leader exposes assets to substantial risk. Jonathan Deng rated it it was amazing Jun 20, Check out the top books of the year on our page Best Books of By operating in the institutional mainstream of short-horizon, piobeering opportunities, committee members and staff ensure unspectacular results, while missing pioneefing rewarding longer term contrarian plays.

Swensen lives in New Haven, Connecticut. Regular face-to-face meetings between fund managers and external advisors constitute the most important tool for performance evaluation. To create more secure cash flows, investment firms frequently gather excessive amounts of assets, follow benchmark-hugging portfolio strategies, and dilute managwment efforts across a broad range of product offerings. My library Help Advanced Book Search.


This very thoughtful and thorough book lays out an approach to institutional investment — management of a university endowment, specifically — that is both pragmatic pioneeting grounded in rigorous finance David Swensen of Yale’s Endowment.

An Unconventional Approach to Institutional Overall very solid book.

Swensen advises appropriately to maintain an equity bias and follow diversification principles. With active management, a lot depends on the manager, so it is important to hire good ones.

Swensen also appropriately defines asset classes in terms of the function they serve. What may have seemed like one among many success swenssn in the era before the Internet bubble burst emerges now as a completely unprecedented institutional investment achievement.

This is a swesen detailing many strategies that can be employed with endowment and pension management as well as describing which are often or sometimes the best fit for a situation. Recommended for its contrarian view, especially around fixed-income investing. At Yale, where he produced an unparalleled two-decade investment mmanagement of Like the residents of Lake Wobegon who all believe their children to be above average, nearly all investors believe their active strategies will produce superior results.

Beyond the pragmatic possibility of improving investment outcomes, students of finance might enjoy exploring the thought process managemdnt the dagid of a large institutional fund.

Rigorous self-assessment leads to segregation of those with active management ability from those without, increasing chances for investment success by understanding which activities to avoid and which activities to pursue. Just a moment while we sign you in to your Goodreads account. Market participants rarely wonder whether high returns came from accepting greater than market risk, or whether low returns resulted from lower than market risk.

Individuals desire immediate gratification, leading to overemphasis of policies expected to pay off in a relatively short time frame. Published May 22nd by Free Press first published May 15th