http://thefinancebuff.com/2008/02/book-review-unconventional-success.html like a friend telling you about money ... Thu, 19 Nov 2009 19:44:17 -0600 http://wordpress.org/?v=2.8 hourly 1 http://thefinancebuff.com/2008/02/book-review-unconventional-success.html/comment-page-1#comment-461 Anonymous Sat, 16 Feb 2008 03:04:00 +0000 http://blog.thefinancebuff.com/?p=222#comment-461 I don't agree that the book lacks "practical" advice. The chapter on exchange traded funds, for example, suggests specific funds for the various sectors of the market that are recommended earlier in the book. For investors thinking about ETFs as an alternative to traditional funds or individual stocks, there is a lot of food for thought there. Indeed, I thought that Swensen's emphasis on low-cost broad-index ETFs was second only to "alignment of interests" as a focus of the book.<br/>Herb<br/>Brooklyn, NY I don't agree that the book lacks "practical" advice. The chapter on exchange traded funds, for example, suggests specific funds for the various sectors of the market that are recommended earlier in the book. For investors thinking about ETFs as an alternative to traditional funds or individual stocks, there is a lot of food for thought there. Indeed, I thought that Swensen's emphasis on low-cost broad-index ETFs was second only to "alignment of interests" as a focus of the book.
Herb
Brooklyn, NY

]]> http://thefinancebuff.com/2008/02/book-review-unconventional-success.html/comment-page-1#comment-460 TFB Sat, 16 Feb 2008 03:01:00 +0000 http://blog.thefinancebuff.com/?p=222#comment-460 It's true the endowment's size gives it opportunities retail investors don't have. But the endowment, especially its domestic and foreign equity portion, isn't that much larger than a large mutual fund. If you look at Yale's annual report, the performance gap above passive benchmark is huge, many times over the cost difference between what an investment manager charges the endowment versus what a retail mutual fund charges. So he's saying he can find top quartile active managers but retail investors can't. It raises the question why. It's true the endowment's size gives it opportunities retail investors don't have. But the endowment, especially its domestic and foreign equity portion, isn't that much larger than a large mutual fund. If you look at Yale's annual report, the performance gap above passive benchmark is huge, many times over the cost difference between what an investment manager charges the endowment versus what a retail mutual fund charges. So he's saying he can find top quartile active managers but retail investors can't. It raises the question why.

]]> http://thefinancebuff.com/2008/02/book-review-unconventional-success.html/comment-page-1#comment-459 Anonymous Sat, 16 Feb 2008 00:36:00 +0000 http://blog.thefinancebuff.com/?p=222#comment-459 While at Yale, I got to have dinner with Swenson. He is a very interesting, and brilliant, man. As to Yale's strategy, he would admit your issue about active management and defend it on the grounds that the endowment's size gives him opportunities you/I don't have. While at Yale, I got to have dinner with Swenson. He is a very interesting, and brilliant, man. As to Yale's strategy, he would admit your issue about active management and defend it on the grounds that the endowment's size gives him opportunities you/I don't have.

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