The Endowment Model of Investing: Return, Risk, and Diversification (Wiley Finance) - Hardcover

Leibowitz, Martin L.; Bova, Anthony; Hammond, P. Brett

Hardcover

ISBN 10: 0470481765 ISBN 13: 9780470481769

Publisher: John Wiley & Sons, 2010

Synopsis

A cutting-edge look at the endowment model of investing Many larger endowments and foundations have adopted a broadly diversified asset allocation strategy with only a small amount of traditional U.S. equities and bonds. This technique, known as the "endowment model of investing," has demonstrated consistent long-term performance and attracted the attention of numerous institutional and individual investors. With The Endowment Model of Investing Leibowitz, Bova, and Hammond take a closer look at the endowment model with customary research sophistication and attention to detail. Throughout the book, they examine how the model provides truly outstanding real returns, while keeping a close eye on the risks associated with this method of investing. Along the way, the authors offer practical advice on incorporating the endowment model into your own investment endeavors and reveal what it takes to make this method work in the real world. * Details the growing debate about the endowment model of investing and discusses how to use it successfully * Written by an authority on endowment investing and non-traditional asset allocation strategies * Offers expert insights on understanding risk and return in non traditional asset allocation If you want to gain a better grasp of one of the most successful forms of investing, then The Endowment Model of Investing is a book you need to read.

About this title

From the Back Cover:

Praise for The Endowment Model of Investing

"This is a terrific book-required reading for any CIO responsible for the management of long-term investment portfolios."
--Lyn Hutton, Chief Investment Officer, Commonfund

"In my judgment--a must-read for every chief investment officer or strategist."
--Allan S. Bufferd, Treasurer Emeritus, MIT

"Shed(s) . . . light on . . . [endowment] portfolios during the financial crisis, and why their pain was predictable, inevitable, and . . . necessary for long-term success."
--Andrew K. Golden, President, Princeton University Investment Company

"This is a must-read for every institutional investor concerned with portfolio risk management. Full of important insights and robust analyses."
--Ian Kennedy, former global director of research, Cambridge Associates

"An elegant, rigorous, and articulate examination of . . . the endowment model . . . and why skillful implementation is always crucial."
--Charles D. Ellis, author, Winning the Loser's Game

"Is the endowment model broken? The answer, as provided . . . [in this] . . . appealing mix of analysis and common sense . . . is 'No'."
--Jack R. Meyer, Managing Partner and CEO, Convexity Capital

"A penetrating analysis of the trend towards allocating into multiple asset classes that shows when such diversification helps to control fund-level risk--and when it does not!"
--Jim Simons, Chairman, Renaissance Technologies LLC

"All-in-all . . . a balanced and exceptionally thoughtful study . . . that is sorely needed . . . a lot of great insight into basic finance and investing. Heartily recommended."
--Clifford Asness, Chairman, AQR Investments

"A valuable new approach that probes more deeply into the various forms of diversification."
--Frank J. Fabozzi, Professor in the Practice of Finance, Yale School of Management, and Editor, Journal of Portfolio Management

"A major advance in . . . investing for endowments . . . provides a way to incorporate . . . 'alphas' into a risk/return framework . . . I think the book is great."
--David Booth, CEO, Dimensional Fund Advisors

"Many institutional funds may find this framework insightful for asset allocation and risk management purposes."
--Roger Clarke, Chairman, Analytic Investors, Inc.

"A compendium of insightful and actionable principles for the endowment space. . . an important . . . framework for success for many institutional portfolios."
--H. Gifford Fong, President, Gifford Fong Associates

"A must-read for assessing . . . the future of this trusted model. This very readable book calls for maintaining the endowment model but adjusting our time horizons."
--Edgar Sullivan, Managing Director, Promark Global Advisors (formerly General Motors Asset Management)

About the Author:

Martin L. Leibowitz is Managing Director in the U.S. Research Department at Morgan Stanley. Prior to working at Morgan Stanley, he was vice chairman and chief investment officer of TIAA-CREF. Leibowitz is a leading authority in the fields of security analysis and portfolio allocation. He is the author of four books, including Franchise Value, and 138 articles, eight of which have won the prestigious Graham and Dodd Award for excellence in financial writing. Anthony Bova is a Vice President in the Morgan Stanley Research Department, focusing on institutional portfolio strategy. He recently won the ninth annual Bernstein Fabozzi/Jacobs Levy Award for coauthoring the article "Gathering Implicit Alphas in a Beta World," which ran in the Spring 2007 issue of the Journal of Portfolio Management. P. Brett Hammond is a Managing Director and Chief Investment Strategist for TIAA-CREF Asset Management. His group is responsible for asset allocation modeling, institutional advising, economic and market commentary, and investment product and portfolio research. Within TIAA-CREF, Hammond has also published extensively on pension issues, developed new approaches to performance attribution, and played a key role in the creation of the company's life-cycle inflation-linked bond funds.

About this edition

• Publisher: John Wiley & Sons
• Publication date: 2010
• ISBN 10: 0470481765
• ISBN 13: 9780470481769
• Binding: Hardcover
• Number of pages: 352