Fund of Funds
A fund of funds FOF raises capital from limited partners and invests the proceeds in several hedge funds. Hedge fund of funds can potentially solve a number of the aforementioned problems. They may offer lower minimums, have more regular liquidity, but most important, they perform the due diligence and manager selection for you. If staffed by a competent group, this function can prove to be worth its weight in gold. Risk is also spread across a number of funds, from a low of a couple of funds...
The Yale Endowment
Those who can, do. Those who can't, teach. The author of this quotation never heard of David Swensen. Swensen graduated from the University of Wisconsin in 1975 with a major in economics, followed by a Ph.D. also in economics from Yale University under the Nobel Laureate James Tobin. Swensen is now a professor himself teaching classes at Yale, and has authored two best-selling books. Sounds like the typical ivory tower career path, right Except for the past 22 years Swensen has also managed the...
Creating an AllWeather Policy Portfolio through Indexing
Jack Meyer gives this advice to the individual investor in a 2004 BusinessWeek interview First, get diversified. Come up with a portfolio that covers a lot of asset classes. Second, you want to keep your fees low. That means avoiding the most hyped but expensive funds, in favor of low-cost index funds. And finally, invest for the long term. Investors should simply have index funds to keep their fees low and their taxes down. Symonds, 2004 In short diversify, avoid fees and taxes, index, and...
History of the Endowment 1
Harvard University, which celebrated its 370th anniversary in 2006, is the oldest institution of higher education in the United States. Founded in 1636, 16 years after the arrival of the Pilgrims at Plymouth, the university has grown from 9 students with a single master to an enrollment of more than 18,000 degree candidates. Eight presidents of the United States John Adams, John Quincy Adams, Theodore and Franklin Delano Roosevelt, Rutherford B. Hayes, John Fitzgerald Kennedy, George W. Bush,...
The Ivy Portfolio
How to Invest Like the Top Endowments and Avoid Bear Markets Copyright 2009 by Mebane T. Faber and Eric W. Richardson. All rights reserved. Published by John Wiley amp Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United...