Guest Lecture by David Swensen Financial Markets (ECON 252) -Year 2008 David Swensen, Yale's Chief Investment Officer and manager of the University's endowment, discusses the tactics and tools that Yale and other endowments use to create long-term, positive investment returns. He emphasizes the importance of asset allocation and diversification and the limited effects of market timing and security selection. Also, the extraordinary returns of hedge funds, one of the more recent phenomena of portfolio management, should be looked at closely, with an eye for survivorship and back-fill biases. 00:00 - Chapter 1. Introduction: Changing Institutional Portfolio Management 03:59 - Chapter 2. Asset Allocation: The Power of Diversification 16:44 - Chapter 3. Balancing the Equity Bias into Sensible Diversification 20:48 - Chapter 4. The Emotional Pitfalls of Market Timing 32:58 - Chapter 5. Survivorship and Backfill Biases in Security Selection 43:17 - Chapter 6. Finding Value Investing Opportunities as an Active Manager 49:02 - Chapter 7. Yale's Portfolio and Results 54:48 - Chapter 8. Questions on New Investments, Remaining Bullish, and Time Horizons Complete course materials are available at the Open Yale Courses website: http://open.yale.edu/courses This course was recorded in Spring 2008.
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Channels: Finance
Tags: asset allocation back-fill bias David Swensen diversification hedge funds market timing portfolio management security selection survivorship Yale endowment
Uploaded by: yalefinanmarkets ( Send Message ) on 20-08-2012.
Duration: 71m 24s
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Lec 1-Year 2008 Finance and Insurance as Powerful Forces in Our
Lec 2 -Year 2008 - The Universal Principle of Risk Management: Pooling
Lec 3 -Year 2008 - Technology and Invention in Finance
Lec 4 -Year 2008 - Portfolio Diversification and Supporting Financial
Lec 5 -Year 2008 - Insurance: The Archetypal Risk Management
Lec 6 -Year 2008 - Efficient Markets vs. Excess Volatility
Lec 7 -Year 2008 - Behavioral Finance: The Role of Psychology
Lec 8 -Year 2008 - Human Foibles, Fraud, Manipulation, and Regulation
Lec 10 -Year 2008 - Debt Markets: Term Structure
Lec 12 -Year 2008 - Real Estate Finance and its Vulnerability to Crisis
Lec 13 -Year 2008 - Banking: Successes and Failures
Lec 14 -Year 2008 - Guest Lecture by Andrew Redleaf
Lec 15 -Year 2008 - Guest Lecture by Carl Icahn
Lec 16 -Year 2008 - The Evolution and Perfection of Monetary Policy
Lec 17 -Year 2008 - Investment Banking and Secondary Markets
Lec 18 -Year 2008 - Professional Money Managers and Their Influence
Lec 19 -Year 2008 - Brokerage, ECNs, etc.
Lec 20 -Year 2008 - Guest Lecture by Stephen Schwarzman
Lec 21 -Year 2008 - Forwards and Futures
Lec 22 -Year 2008 - Stock Index, Oil and Other Futures Markets
Lec 23 -Year 2008 - Options Markets
Lec 24 -Year 2008 - Making It Work for Real People: The Democratization
Lec 25 -Year 2008 - Learning from and Responding to Financial Crisis I
Lec 26 -Year 2008 Learning from and Responding to Financial Crisis II