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Diminishing Returns for College Endowments




David Swensen left a profitable Wall Avenue profession in 1985 to handle the Yale endowment. He launched a brand new investment-management philosophy and actually wrote the guide describing the method. The Swensen mannequin labored spectacularly at Yale and at many different instructional establishments. However simply because the method is now broadly marketed because the optimum approach for all portfolios to take a position, there are good causes to consider that will probably be much less efficient sooner or later. Particular person buyers ought to particularly be cautious.



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