David swensen s portfolio from unconventional success. David swensens investment strategy origin investments. He has been the chief investment officer at yale university since 1985. In the subsequent three decades, he has produced superlative returns including a 20year winning streak of. Swensen has been advising the yale endowment since 1985, having earned his ph. Lets take a look at how david swensen has constructed a high performing portfolio that takes the best of this thinking from the yale endowment model. For the past twentythree years, david swensen has continuously proven himself to be an innovator and leader in the world of endowment investing as chief investment officer cio at yale university. In the subsequent three decades, he has produced superlative returns including a 20year winning streak of positive returns from 19882007. As swensen would recount in a talk at the 2018 yale reunion, the graduate presenting him the book had told him, david, you always read from keynes as if you were reading from the bible. David swensens portfolio from unconventional success. Under his leadership, yales endowment has generated an astonishing 20 consecutive years of positive returns, from 1988 to 2008. Year after year, yale s portfolio has trumped the marketplace by a wide. Swensen born 1954 is an american investor, endowment fund manager, and philanthropist.
David swensen, the chief investment officer at yale university, has enjoyed great success. David swensen, yale universitys chief investment officer, this week underscored the importance of environmental sustainability in the universitys investment choices. He took over yales endowment in 1985 and achieved a return of 16. Sep 07, 2014 david swensen, investment manager of the yale university endowment fund, has addressed how investors should set up and manage their investments in his book, unconventional success. Well start by taking a look at how it has performed. Asset allocation 30% total stock market15% international stocks5% emerging markets30% intermediate bonds. David swensen should undoubtedly be regarded as a superinvestor. Under his stewardship during the past 32 years, the yale endowment generated returns of.
A fundamental approach to personal investment when david swensen trades, portfolio took over the yale university endowment fund, the fund provided 10% of the universitys operating funds. About david swensen david swensen took over management of yales endowment in 1985. Homepage membership levels membership data coverage complete stock list founders message the book value investing forum podcast free trial screeners value screens. In this video, origins michael episcope explains what has made swensens investment strategy for the yale endowment so successful over the years. Ive done that for 33 years, and its been a pretty good run. The yale model, sometimes known as the endowment model, was developed by david swensen and dean takahashi and is described in swensens book pioneering portfolio management. Jun, 2019 but david swensen himself, yales cio, wrote the following in yales 2017 annual endowment report.
Interview with david swensen yale school of management. David swensen is author of the bestselling unconventional success and manager of yale universitys endowment fund, where hes generated phenomenal returns in the range of 16% annually the past. How to invest like yales david swensen seeking alpha. The money management gospel of yales endowment guru a portrait of david swensen at yale. D from the school, he coined his investment philosophy the yale model. Prior to joining yale in 1985, he spent six years on wall street, where his work focused on developing new financial technologies. The money management gospel of yales endowment guru the. In the years since the nowclassic 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 swensen portfolio consists of six core asset class allocations us equity. In just under a quartercentury as yales chief investment officer, david swensen 80phd has generated bernard madofflike returnsexcept that swensen made his money honestly.
British portfolios can ger usa asset allocation stocks domestic 30% total stock market uk international 15% world total stock market 5% emerging markets bonds 30% intermediate term gilts uk real assets 20% reits usa. David swensens guide to sleeping soundly features yale. I enjoyed this book from david swenson from the yale endowment. Jan 23, 2019 the yale model i have been looking for a good book about asset allocation, and i decided to pick up david swensens book, unconventional success. For yale s money man, a higher calling david swensen calls his running of the yale endowment a labor of love.
The yale model swensen has been advising the yale endowment since 1985, having earned his ph. David swensen portfolio, asset allocation with a punch. Swensen is the chief investment officer of yale university and the bestselling author of pioneering portfolio management. The man behind that investment success is david swensen, one of the. Swensen reaffirms climate change as a guiding factor in. David swensen, yales chief investment officer and manager of the universitys endowment, discusses the tactics and tools that yale and other endowments use to create longterm, positive investment returns. The legendary chief investment officer of the yale endowment the best performing of its kind over the last 20 years. Nov 06, 2016 the money management gospel of yales endowment guru a portrait of david swensen at yale. Keep it simple, says yales top investor the new york times. Few would have anticipated such an outcome when swensen s book was published in. May 04, 2020 david swensen is a clear runner up for being one of the good guys in investing. It consists broadly of dividing a portfolio into five or six roughly equal parts and investing each in a different asset class.
As a result, his investment style has been emulated by many other university endowments. The david swensen yale endowment portfolio granted a 2. Mar 02, 2015 david swensen, manager of the yale endowment, recommended this portfolio in his book unconventional success. Sep 11, 2019 as swensen would recount in a talk at the 2018 yale reunion, the graduate presenting him the book had told him, david, you always read from keynes as if you were reading from the bible. Its a high risk portfolio and it can be replicated with 6 etfs. The universitys chief investment officer for nearly 35 years, swensen has raised an entire generation of endowment cios in his image, and explained yales strategy to the world in his hit book. The dividend yield of david swensen yale endowment portfolio is the result of the following asset allocation.
Swensen reaffirms climate change as a guiding factor in yale. In the years since the nowclassic pioneering portfolio management was first published, the global investment landscape has changed dramatically but the results of david swensens investment strategy for the yale university endowment have remained as impressive as ever. May 03, 2017 david swensen took over management of yales endowment in 1985. Pioneering portfolio management by swensen, david f. Under his stewardship during the past thirtytwo years the yale endowment generated returns of. David swensen, manager of the yale endowment, recommended this portfolio in his book unconventional success. For yale s money man, a higher calling the new york times. He took over yale s endowment in 1985 and achieved a return of 16. Swensen, who has run the yale endowment since 1988, relying on a complex strategy that includes investments in hedge funds and other esoteric vehicles. As swensen would recount in a talk at the 2018 yale reunion, the graduate presenting him the book had told him, david, you always read. I have been looking for a good book about asset allocation, and i decided to pick up david swensen s book, unconventional success.
We backtest the portfolio with the recommended 7030 stockbond split and modify. Ritger and vkm discuss david swensen, the iconic head of the yale endowment and how to apply his approach to managing your own portfolio. David swensen is a clear runner up for being one of the good guys in investing. The yale model, sometimes known as the endowment model, was developed by david swensen and dean takahashi and is described in swensen s book pioneering portfolio management. He serves on the boards of tiaa, the brookings institution, carnegie institution, and hopkins school. Econ 252 2008 lecture 9 guest lecture by david swensen. Description of david swensens yale endowment portfolio. David swensen doesnt have a household name like warren buffett or jim rogers.
Yales david swensen and nprs chris arnold will offer. The swensen portfolio consists of six core asset class allocations. The legendary chief investment officer of the yale endowment the best performing of. If only they had david swensen investing their money. Central in the yale model is broad diversification and an equity orientation, avoiding asset. This is the portfolio david swensen manager of the yale endowment recommends for individual investors in his book unconventional success.
He has addressed how investors should set up and manage their investments in his book, unconventional success. Swensen, who has run the yale endowment since 1988, relying on a complex strategy that includes investments in. While buffett appropriately recognizes the challenges investors face in manager selectionperhaps most notably that the vast majority of managers who attempt to outperform fail after taking into account fees and expenseshis conclusion. At yale, where he produced an unparalleled twodecade investment record of 16. Many even consider him the babe ruth of endowment fund managers. David swensen, investment manager of the yale university endowment fund, has addressed how investors should set up and manage their investments in his book, unconventional success. This model portfolio is taken from unconventional success by david swensen. Generating astronomical annual returns of 28% in 2007,2 as compared to the average 21. David swensen is manager of yale universitys endowment fund. David swensen made yale fabulously rich and changed. During his tenure, it has achieved an annual compound growth rate of 16. Dec 14, 2017 ritger and vkm discuss david swensen, the iconic head of the yale endowment and how to apply his approach to managing your own portfolio.
Mar 08, 2019 about david swensen david swensen took over management of yales endowment in 1985. David swensen narrative by sydney finkelstein based on. Jul 20, 2007 david swensen, the manager of the yale university endowment, has posted such consistently strong portfolio returns over the years that he could sign off his annual reports with a similar close. Jul 31, 2019 the universitys chief investment officer for nearly 35 years, swensen has raised an entire generation of endowment cios in his image, and explained yales strategy to the world in his hit book. But david swensen himself, yales cio, wrote the following in yales 2017 annual endowment report. David swensen department of economics yale university. Swensen, chief investment officer of yale university, fanned the flames of enthusiasm in his bestselling book, pioneering portfolio management free press, 2000.
It was a friday morning in early march, and david swensen was furious. The david swensen asset allocation value stock geek. As mentioned before, swensen is not a personal financial advisor, but is a respected institutional money manager who currently runs the yale endowment. Under his stewardship during the past 27 years the yale endowment generated returns of. Given his incredible track record, many individual investors have wanted to follow his investing advice for. Swensen recommends that investors should select not for profit mutual fund companies such as vanguard or tiaacref to.
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