In honor of university endowments, including
Yale, Princeton, Stanford, and MIT.
In Memoriam: David Swensen
Yale Model in the News
Updated
Bloomberg
Yale's $2.5 Billion Private Equity Sale Tests Its Vaunted Endowment Model
The Washington Post
Harvard Is The Wealthiest U.S. University. Can It Survive A Trump Standoff?
The New York Times
Yale Is Rushing to Sell Billions in Private Equity Investments
Financial Times
Ivy League endowments sell private equity stakes amid buyout downturn
David Swensen on the Yale Model
Excerpts from Pioneering Portfolio Management
"Equally important to Yale’s own success has been its extensive network
of professional friendships throughout the world of investing."
"The perpetual nature of colleges and universities makes endowment management
one of the investment world's most fascinating endeavors."
"A strong portfolio management framework rests on asset allocation decisions and
incorporates a bias toward equity assets with an appropriate level of diversification."
"Establishing and maintaining an unconventional investment profile requires
acceptance of uncomfortably idiosyncratic portfolios, which frequently
appear downright imprudent in the eyes of conventional wisdom.
Unless institutions maintain contrarian positions through difficult times,
the resulting damage of buying high and selling low imposes severe
financial and reputational costs on the institution."
"Market participants willing to accept illiquidity achieve
a significant edge in seeking high risk-adjusted returns.
Because market players routinely overpay for liquidity,
serious investors benefit by avoiding overpriced liquid
securities and by embracing less liquid alternatives."
Yale University
Guest Lecture by David Swensen
on Yale's YouTube channel
WealthTrack
David Swenson on the Yale Endowment (Part 1)
David Swenson on the Yale Endowment (Part 2)
on WealthTrack's YouTube channel
What is the Yale Model?
The Yale model is an investment strategy pioneered by David Swensen and Dean Takahashi for institutional investors. The model is widely regarded as one of the most successful institutional investment strategies and has been influential in reshaping how university endowments and other large institutional investors manage their funds.
The Yale model promotes a long-term approach that prioritizes partnerships with the best investment managers to create a portfolio that is equity-oriented and diversified across asset classes.
Source: Yale Investments Office
In Memoriam: David Swensen
David F. Swensen (1954 - 2021) served as the Chief Investment Officer of Yale University from 1985 to 2021, when he passed away after a courageous, nine-year battle with cancer. David led a life of purpose; his impact was profound, far reaching, and enduring.
David pioneered a portfolio management strategy that became known as the "Yale Model." Under his leadership, the Endowment grew from approximately $1.3 billion to $42.3 billion, while providing billions of dollars of spending distributions to support Yale’s operations. Moreover, David’s approach to portfolio management and manager selection came to shape the investment strategies of endowments and foundations around the world. More directly, he trained and mentored an entire generation of institutional investors, as his protégés have gone on to lead the endowments of fifteen other institutions, including Princeton University, Massachusetts Institute of Technology, University of Pennsylvania, and Stanford University.
Source: Yale Investments Office
Swensen Tower · Yale University
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