Author Archive

Has the ‘Endowment Model’ stopped working?

January 31st, 2017

Fortune Magazine, Dec 2016 http://fortune.com/college-endowments-investing/ Speed Read Through 2016, the average university endowment has had a poorer record—over one year, three years, five years, and 10 years—than the average public pension fund. The average endowment earned 6.3% a year over the previous 10 years, compared with 6.8% for a 60%/40% blend of U.S. stocks and bonds. Harvard’s […]

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Harvard Makes Changes in Managing a Lagging Endowment

January 28th, 2017

By GERALDINE FABRIKANT, NY Times, JAN. 25, 2017 Because of several years of poor performance relative to other major endowments, Harvard has been pressed to alter its strategy. Kayana Szymczak for The New York Times  Harvard, which has been under intense pressure to rethink its investment approach for its endowment, announced on Wednesday sweeping changes to how its […]

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The End of Alchemy: Money, Banking and the Future of the Global Economy, by Mervyn King

Most accounts of the recent crisis focus on the symptoms and not the underlying causes of what went wrong. But those events, vivid though they remain in our memories, comprised only the latest in a long series of financial crises since our present system of commerce became the cornerstone of modern capitalism. Alchemy explains why, ultimately, this […]

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Other People’s Money: Masters of the Universe or Servants of the People? By John Kay

Industry insider John Kay argues that the finance world’s perceived profitability is not the creation of new wealth, but the sector’s appropriation of wealth – of other people’s money. The financial sector, he shows, has grown too large, detached itself from ordinary business and everyday life, and has become an industry that mostly trades with […]

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Michael Sandel: Progressive parties have to address the people’s anger

January 1st, 2017

Link The election of Donald Trump and the triumph of Brexit – the two political earthquakes of 2016 – resulted from the failure of elites to grasp the discontent in democracies around the world. The populist revolt marked the rejection of a technocratic approach to politics incapable of understanding the resentments of voters who feel the economy […]

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Gavyn Davies: How should we compensate the losers from globalisation?

December 16th, 2016

How should we compensate the losers from globalisation? Link The rise in political “populism” in 2016 has forced macro-economists profoundly to re-assess their attitude towards the basic causes of the new politics, which are usually identified to be globalisation and technology. The consensus on the appropriate policy response to these major issues – particularly the […]

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Long-term investing – for professional investors

There is a fundamental difference in short-term and long-term investing that is well understood by insurance companies, pension funds and endowments. Unfortunately, financial markets are generally set up to sell products to investors. Investments are designed and marketed using sophisticated techniques. Real-time prices, graphs, colours and flashing numbers grab our attention. Short-termism rules. ‘Star managers’ are feted […]

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New York Times : The Money Management Gospel of Yale’s Endowment Guru

November 5th, 2016

Link Mr. Swensen, 62, runs the school’s $25.4 billion endowment, one of the largest in the country. Usually he is joined by his intellectual sparring partner, Dean Takahashi, his senior director. It amounts to an internship in the world of managing a university’s billions — and the young analysts have a front-row seat. “It was […]

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