Sunday, August 22, 2010

The Ivy Portfolio

Title: The Ivy Portfolio - How to Invest Like the Top Endowments and Avoid Bear Markets
Authors: Mebane T. Faber, Eric W. Richardson
Publisher: John Wiley & Sons, Inc 2009

This is a very interesting book focusing on the constitution of two of the biggest university endowment funds in the US, namely Yale & Harvard.  The authors examined how these two funds allocate their funds into different asset class and achieve good returns over the years.  Basically, this is a book on the topic of asset allocation.

There are a few salient points worth mentioning.

1. The simple investment timing rule using the 10-month SMA as the indicator
2. The exposure to private equity
3. Four sample policy portfolios at the end of the book for your reference

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