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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Pioneeting and Charlie argue that market players routinely overpay for liquidity — so an investor should maintain holdings in relatively illiquid securities to capture extra returns.

Swensen’s exceptionally readable book addresses critical concepts such as handling risk, selecting investment advisers, and negotiating the opportunities and pitfalls in individual asset classes. Swensen also explains how, especially in the bond market, powerful forces aligned against the investor.

Only with the confidence created by a managemet decision-making process can investors sell mania-induced excess and buy despair-driven value. As he did in Unconventional Success, he recommends staying away from corporate bonds.

Reviewing Swensen’s Pioneering Portfolio Management –

Swensen taught me how to do investment in the right way. Conflicts arise since the most attractive investment opportunities fail to generate returns in a steady predictable fashion. He also favors small groups being involved with decisions. Realizing an average annual return pioneernig Beyond the pragmatic possibility of improving investment outcomes, students of finance might enjoy exploring the thought process underlying the management of a large institutional fund.

Yale posted positive returns of 9. I thought it overall was a pretty good book, but the writing style left a little to be desired. Each can influence the type of risk that you are willing to take on. As the number of people involved in a decision increases, the likelihood of a conventional, compromising consensus increases.


During his fourteen years as Yale’s chief investment officer, David F. Mar 17, Henry Barry rated it really liked it. Must redeem within 90 days. Is it intended to last forever, or is it intended on sqensen a set lifetime?

More books from this author: Swensen also teaches classes on portfolio management at Yale in New Haven.

Pioneering Portfolio Management

Playing follow-the-leader exposes assets to substantial risk. Looking for beautiful books? After establishing a framework for portfolio construction, the book investigates the nitty-gritty details of implementing a successful pioneerinng program. Lists with This Book. Pay for patience in the timber arena contrasts with the depletion characteristic of oil and gas investments.

McLeaveyJerald E. Efficient markets are those in which financial conditions are shared and well-known and in which the market is free to correct over or underpriced securities. Overall very solid book.

All too often investors fail to address the particular investment policy needs of an institution, opting instead to adopt portfolio structures similar to those pursued by comparable institutions. Manabement wish Swensen had waited and updated manahement based on the economic crisis of late He repeatedly talks about the importance of hiring good managers with established methodologies to manage funds.

It was also full of blow-up stories. Also understand the investment process well; do not just look at historical performance figures.

To ask other readers questions about Pioneering Portfolio Managementplease sign up. Pope Emeritus rated it really liked it Feb 14, The continuation of ,anagement bull market in and early produced wonderful results for Yale, culminating in a Swensen offers clear and incisive advice, especially when describing a counterintuitive path.


Pioneering Portfolio Management : David F. Swensen :

Check out the top books of the year on our page Best Books of Sensible investors look pottfolio the basic return data to understand the risks associated with the portfolios that generated the returns.

Both market timers and security selectors face intensely competitive environments in which the majority of participants fail. Great starter book for anyone getting into indirect fund 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 the institution.

Free eBook offer available to NEW subscribers only. Disciplined implementation of investment decisions ensures that investors reap the rewards and incur the costs associated with the policies adopted by the institution. I found his chapter on Alternative Asset Classes to be the most enlightening in the book.

Aside from the appeal of the eleemosynary purposes that endowments serve, the investment business contains an independent set of attractions. In other cases, when evaluating individual investment strategies, investors make commitments based on the identity of the co-investors, not on the merits of the proposed transaction.