Pioneering Portfolio Management: An Unconventional Approach to Institutional Inv

Description: Pioneering Portfolio Management by David F. Swensen Synopsis coming soon....... FORMAT Hardcover LANGUAGE English CONDITION Brand New Publisher Description An indispensable roadmap for creating a successful investment program from Yales chief investment officer, David F. Swensen.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 Swensens investment strategy for the Yale University endowment have remained as impressive as ever. Year after year, Yales portfolio has trumped the marketplace by a wide margin, and, with over $20 billion added to the endowment under his twenty-three-year tenure, Swensen has contributed more to Yales finances than anyone ever has to any university in the country. What may have seemed like one among many success stories in the era before the Internet bubble burst emerges now as a completely unprecedented institutional investment achievement. In this fully revised and updated edition, Swensen, author of the bestselling personal finance guide Unconventional Success, describes the investment process that underpins Yales endowment. He provides lucid and penetrating insight into the world of institutional funds management, illuminating topics ranging from asset-allocation structures to active fund management. 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. Swensen offers clear and incisive advice, especially when describing a counterintuitive path. Conventional investing too often leads to buying high and selling low. Trust is more important than flash-in-the-pan success. Expertise, fortitude, and the long view produce positive results where gimmicks and trend following do not. The original Pioneering Portfolio Management outlined a commonsense template for structuring a well-diversified equity-oriented portfolio. This new edition provides fund managers and students of the market an up-to-date guide for actively managed investment portfolios. Notes An unconventional approach for creating a successful investment programme. Author Biography David F. Swensen (1954–2021) was the chief investment officer of Yale University and the bestselling author of Pioneering Portfolio Management. He served on the boards of TIAA, The Brookings Institution, Carnegie Institution, and Hopkins School. At Yale, where he produced an unparalleled two-decade investment record of 16.1 percent-per-annum returns, he taught economics classes at Yale College and finance classes at Yales School of Management. Table of Contents FOREWORD BY CHARLES D. ELLISTOBINS FRIEND: FOREWORD TO THE 2000 EDITION1. INTRODUCTION2. ENDOWMENT PURPOSES3. INVESTMENT AND SPENDING GOALS4. INVESTMENT PHILOSOPHY5. ASSET ALLOCATION6. ASSET ALLOCATION MANAGEMENT7. TRADITIONAL ASSET CLASSES8. ALTERNATIVE ASSET CLASSES9. ASSET CLASS MANAGEMENT10. INVESTMENT PROCESSAPPENDIX: IMPURE FIXED INCOMENOTESACKNOWLEDGMENTSINDEXABOUT THE AUTHOR Review Barton M. Biggs, Chairman, Morgan Stanley Dean Witter Investment ManagementDavid Swensen is one of the best and most original fiduciaries of modern times. His thinking has survived the battlefields and it has worked for big money.Burton G. Malkiel, Chemical BankChairmans Professor of Economics, Princeton UniversityOne of the worlds most successful institutional fund managers presents powerful insights to help us become better investors. A must-read for both institutional and serious individual investors.Jack R. Meyer, President and CEO, Harvard Management Company, Inc.A masterful work by the master himself. We at Harvard wish that David Swensen would find a new job.Peter L. Bernstein, PresidentPeter L. Bernstein, Inc.This book will be a classic: it is essential reading for all investors, great and small. David Swensen is a leader and pioneer whose words reveal a rare combination of courage, integrity, and intelligence. No one can fail to find value here.Richard C. LevinF.W. Beinecke Professor of Economics and President, Yale UniversityDavid Swensens creative and disciplined approach to investment has given Yale the resources it needs to augment its capacity for excellence in scholarship and teaching. Those who absorb the wisdom in this book will likewise strengthen the institutions they serve. Review Quote Jack R. Meyer,President and CEO,Harvard Management Company, Inc.A masterful work by the master himself. We at Harvard wish that David Swensen would find a new job. Excerpt from Book Pioneering Portfolio Management 1 Introduction When I wrote the introduction to the first edition of Pioneering Portfolio Management in early 1999, Yales pathbreaking investment strategy had produced excellent results, both in absolute and relative terms, but had not yet been tested by adverse market conditions. In fact, Yales return for the ten years ending June 30, 1998 amounted to 15.5 percent per annum, more than three full percentage points short of the S&P 500s 18.6 percent result. The endowments deficit relative to the then-highest-performing asset class of domestic equity caused naysayers to question the wisdom of undertaking the difficult task of creating a well-diversified equity-oriented portfolio. The years following the first editions publication proved the worth of Yales innovative asset allocation. The continuation of the bull market in 1999 and early 2000 produced wonderful results for Yale, culminating in a 41.0 percent return for the year ending June 30, 2000, a result that trounced the average endowment return of 13.0 percent. Yet, the real test of Yales approach took place in 2001 and 2002 as the Internet bubble burst and marketable equities collapsed. Yale posted positive returns of 9.2 percent in 2001 and 0.7 percent in 2002, even as the average endowment reported deficits of 3.6 percent and 6.0 percent, respectively. In short, equity orientation continued to drive Yales strong results, while diversification kicked in to preserve the universitys assets. From a market perspective, the vantage point of early 2008 differs dramatically from that of early 1999. For the ten years ending June 30, 2007, Yales 17.8 percent return emphatically exceeded the S&P 500s 7.1 percent. Twenty-year results tell a similar tale with Yales 15.6 percent trumping the S&Ps 10.8 percent. In fact, Yales conspicuous success attracted the attention of many investors, making the universitys strategy seem less radical and more sensible, less pioneering and more mainstream. In spite of widespread imitation of Yales portfolio management philosophy, the university posted stunning returns relative to peers. For the year ended June 30, 2007, Yale reported a 28.0 percent return, which exceeded the results of all of the educational institutions that participated in the 2007 Cambridge Associates Annual Analysis of College and University Pool Returns. More significantly, Yales results led the pack for five-, ten-, and twenty-year periods. The universitys pioneering portfolio management works in theory and in practice. The most important measure of endowment management success concerns the endowments ability to support Yales educational mission. When I arrived at Yale in 1985, the endowment contributed $45 million to the universitys budget, representing a century-low 10 percent of revenues. For Yales 2009 fiscal year, in large part as a result of extraordinary investment returns, the endowment will transfer to the budget approximately $1,150 million, representing about 45 percent of revenues. High quality investment management makes a difference! Institutions versus Individuals When I wrote my second book, Unconventional Success, I characterized its message as "a sensible investment framework for individuals," in contrast to the institutional focus of Pioneering Portfolio Management. I erred in describing my target audiences. In fact, I have come to believe that the most important distinction in the investment world does not separate individuals and institutions; the most important distinction divides those investors with the ability to make high quality active management decisions from those investors without active management expertise. Few institutions and even fewer individuals exhibit the ability and commit the resources to produce risk-adjusted excess returns. The correct strategies for investors with active management expertise fall on the opposite end of the spectrum from the appropriate approaches for investors without active management abilities. Aside from the obvious fact that skilled active managers face the opportunity to generate market-beating returns in the traditional asset classes of domestic and foreign equity, skilled active managers enjoy the more important opportunity to create lower-risk, higher-returning portfolios with the alternative asset classes of absolute return, real assets, and private equity. Only those investors with active management ability sensibly pursue market-beating strategies in traditional asset classes and portfolio allocations to nontraditional asset classes. The costly game of active management guarantees failure for the casual participant. No middle ground exists. Low-cost passive strategies, as outlined in Unconventional Success, suit the overwhelming number of individual and institutional investors without the time, resources, and ability to make high quality active management decisions. The framework outlined in Pioneering Portfolio Management applies to only a small number of investors with the resources and temperament to pursue the grail of risk-adjusted excess returns. The World of Endowment Management The fascinating activity of endowment management captures the energy and imagination of many talented individuals charged with stewardship of institutional assets. Investing with a time horizon measured in centuries to support the educational and research missions of societys colleges and universities creates a challenge guaranteed to engage the emotions and the intellect. Aside from the appeal of the eleemosynary purposes that endowments serve, the investment business contains an independent set of attractions. Populated by unusually gifted, extremely driven individuals, the institutional funds management industry provides a nearly limitless supply of products, a few of which actually serve fiduciary aims. Mining the handful of gems from the tons of mine ore provides intellectually stimulating employment for the managers of endowment portfolios. The knowledge base that provides useful support for investment decisions knows no bounds. A rich understanding of human psychology, a reasonable appreciation of financial theory, a deep awareness of history, and a broad exposure to current events all contribute to development of well-informed portfolio strategies. Many top-notch practitioners confess they would work without pay in the endlessly fascinating money management business. The book begins by painting the big picture, discussing the purposes of endowment accumulation and examining the goals for institutional portfolios. Articulation of an investment philosophy provides the underpinnings for developing an asset-allocation strategy--the fundamentally important decision regarding the portion of portfolio assets devoted to each type of investment alternative. After establishing a framework for portfolio construction, the book investigates the nitty-gritty details of implementing a successful investment program. A discussion of portfolio management issues examines situations where real world frictions might impede realization of portfolio objectives. Chapters on traditional and alternative asset classes provide a primer on investment characteristics and active management opportunities, followed by an outline of asset class management issues. The book closes with some thoughts on structuring an effective decision-making process. The linearity of the books exposition of the investment process masks the complexities inherent in the portfolio management challenge. For example, asset allocation relies on a combination of top-down assessment of asset class characteristics and bottom-up evaluation of asset class opportunities. Since quantitative projections of returns, risks, and correlations describe only part of the scene, top-notch investors supplement the statistical overview with a ground-level understanding of specific investments. Because bottom-up insights into investment opportunity provide information important to assessing asset class attractiveness, effective investors consider both top-down and bottom-up factors when evaluating portfolio alternatives. By beginning with an analysis of the broad questions regarding the asset allocation framework and narrowing the discussion to issues involved with managing specific investment portfolios, the book lays out a neat progression from macro to micro, ignoring the complex simultaneity of the asset management process. Rigorous Investment Framework Three themes surface repeatedly in the book. The first theme centers on the importance of taking actions within the context of an analytically rigorous framework, implemented with discipline and undergirded with thorough analysis of specific opportunities. In dealing with the entire range of investment decisions from broad-based asset allocation to issue-specific security selection, investment success requires sticking with positions made uncomfortable by their variance with popular opinion. Casual commitments invite casual reversal, exposing portfolio managers to the damaging whipsaw of buying high and selling low. Only with the confidence created by a strong decision-making process can investors sell mania-induced excess and buy despair-driven value. Establishing an analytically rigorous framework requires a ground-up examination of the investment challenges faced by the institution, evaluated in the context of the organizations specific characteristics. All too often investors fail to address the particular investment polic Details ISBN1416544690 Author David F. Swensen Short Title PIONEERING PORTFOLIO MGM-REV/E Edition Description Revised, Update Language English ISBN-10 1416544690 ISBN-13 9781416544692 Media Book Format Hardcover DEWEY 332.6 Year 2009 Place of Publication New York Country of Publication United States Birth 1954 Edition 0002nd Subtitle An Unconventional Approach to Institutional Investment, Fully Revised and Updated DOI 10.1604/9781416544692 NZ Release Date 2009-02-16 UK Release Date 2009-02-16 Illustrations graphs, charts, tables t-o; index AU Release Date 2008-12-31 Pages 432 Publisher Simon & Schuster Audience General Publication Date 2009-02-16 Imprint The Free Press US Release Date 2009-02-16 We've got this At The Nile, if you're looking for it, we've got it. With fast shipping, low prices, friendly service and well over a million items - you're bound to find what you want, at a price you'll love! 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