The Endowment Model of Investing: Return, Risk, and Diversification - Rilegato

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

Rilegato

ISBN 10: 0470481765 ISBN 13: 9780470481769

Casa editrice: John Wiley & Sons Inc, 2010

Riassunto

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.

Su questo libro

L'autore:

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.

Dalla seconda/terza di copertina:

"Any fund sponsor or portfolio manager considering alternative assets should read this book to gain critical insights into the risks and potential rewards." Bruce I. Jacobs, PhD, Principal, Jacobs Levy Equity Management

The modern "endowment model" with its diversification into multiple asset classes will continue to be an attractive option for investors who have a truly long-term time horizon and are able to ride out bouts of significant short-term volatility. But at the same time, investors should be cautious about accepting the endowment model's past periods of higher returns as a simplistic template for the future.

Nobody understands this better than authors Martin Leibowitz, Anthony Bova, and P. Brett Hammond—leading authorities on asset allocation and institutional portfolio strategies. Now, in The Endowment Model of Investing, they share their extensive experience with you and reveal what it takes to make this approach work in today's dynamic financial markets.

Filled with in-depth insights and expert advice, this resource clearly focuses on the endowment allocation model and will help investors understand the value in its diversification, examine its theoretical underpinnings and its empirical behavior, and reassess where and when it should be used given its benefits and limitations. By adopting a new approach to the risk and return characteristics of individual asset classes—both standard and non-standard—and then exploring how such a reformulation affects their role within a total portfolio, The Endowment Model of Investing provides a better approach to evaluating diversified portfolios and reaping their full potential benefits.

This informative guide is divided into four comprehensive parts:

• Part I: Alpha/Beta Building Blocks of Portfolio Management: demonstrates that asset classes and portfolios can be decomposed into equity-beta and beyond-beta components

• Part II: Beta-Based Asset Allocation: builds upon the total beta framework to develop analytical tools that provide a deeper understanding of the risk-return dimensions of institutional portfolios

• Part III: Theoretical and Empirical Stress Betas: examines both theoretical and actual portfolio behavior in selected regimes, with special attention paid to periods of significant market declines

• Part IV: Asset Allocation and Return Thresholds: develops implications for the future of the endowment model

The modern endowment model is not a magic potion that will smooth returns and lower short-term volatility, but rather a strategy for accumulating incremental returns and achieving more divergent outcomes over the long term—which in itself is one of the most powerful defenses against portfolio risk. For an in-depth understanding of how endowment-like diversification can improve the investment process, The Endowment Model of Investing is the book to read.

Su questa edizione

• Editore: John Wiley & Sons Inc
• Data di pubblicazione: 2010
• ISBN 10: 0470481765
• ISBN 13: 9780470481769
• Rilegatura: Copertina rigida
• Numero di pagine: 334