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 trivia or quizzes yet. Thanks for telling us about the problem. Den er forholdsvist avanceret. This decreases the incentives for them to go somewhere mnagement or start their own firm.
Reviewing Swensen’s Pioneering Portfolio Management –
He repeatedly talks about the importance of hiring good managers with established methodologies to manage funds. Free Press January Length: Shareholder interests, with which company management generally identifies, diverge so dramatically from the goals of bondholders that lenders to companies must expect to end up on the wrong side of nearly every conflict.
TuttleDennis W. Pioneering Portfolio Managementprovides a road map for creating a successful investment programme. Agency Issues A second theme concerns the prevalence of agency issues that interfere with the successful pursuit of institutional goals. Swensen employs an array of vivid real-world examples, many drawn from his own formidable experience, to address critical concepts such as handling risk, selecting advisors, and weathering market pitfalls.
At the same time, fund fiduciaries hope to retain power by avoiding controversy, pursuing only conventional investment ideas.
This very thoughtful and thorough book lays out an approach to institutional investment — management of a university endowment, specifically — that swenaen both pragmatic and grounded in rigorous finance It made me consider macro risks Davod had never thought about before and suggested ways to hedge them. Pinto No preview available – Swensen No preview available – By relying on nonconventional assets, including private equity and venture capital, Swensen has achieved a remarkable annualised return of Playing follow-the-leader exposes assets to substantial risk.
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. Recommended for its contrarian view, especially around fixed-income investing. Unless institutions maintain contrarian positions through difficult times, the resulting damage of buying high and selling low imposes severe financial and reputational costs on swense institution.
By moving into alternative investments, an institution can hedge their investments.
Pioneering Portfolio Management : David F. Swensen :
Swensen also explains how, especially in the bond market, powerful forces aligned against the investor. Swensen Limited preview – No middle ground exists. Like the residents of Lake Wobegon who mannagement believe their children to be above average, nearly all investors believe their active strategies will produce superior results.
Swensen No preview available – Just a moment while we sign you in to your Goodreads account.
Portfolko liquidity only exists when you need it least — consider the air pocket of liquidity in during the October crash or during the Russian debt crisis.
Financially astute timber owners manage holdings on a sustainable basis, cutting the amount of wood produced each year through biological growth. Nearly every aspect of funds management suffers from decisions made in the self-interest of the agents, at the expense of the best interest of the principals.
It was about as engaging as a textbook. See full terms and conditions and this month’s choices.
Reviewing Swensen’s Pioneering Portfolio Management
Diligence and hard work take an investment manager only so far, as even the most carefully researched decisions ultimately face the vicissitudes of market forces.
Also understand the investment process well; do not just look at historical performance figures. Making decisions based on swennsen analysis provides the best foundation for running a strong investment program. The book begins by painting the big picture, discussing the purposes of endowment accumulation and examining the goals for institutional portfolios. Every aspect portoflio the investment management process contains real and potential conflicts between the interests of the institutional fund and the interests of the agents engaged to manage portfolio assets.
Nathan A Barnett rated it it was amazing May 14, He begins by exploring the reasons for endowments and the necessity of an appropriate polices for spend Favorite quote from the book: Want to Read saving…. In the years since the now-classic Pioneering Portfolio Management was first published, the global investment landscape has changed dramatically — but the results of David Swensen’s investment strategy for the Yale University endowment have remained as impressive as ever.
The continuation of the bull market in and early produced wonderful results for Yale, culminating in a In dealing with the entire range of investment decisions from managmeent asset allocation to issue-specific security selection, investment success requires sticking with positions made uncomfortable by their variance with popular opinion.
Expertise, fortitude, and the long view produce positive results where gimmicks and trend following do not. Most asset classes contain investment vehicles exhibiting some degree of agency risk, with corporate bonds representing an extreme case. This book came out in February