NEW YORK (TheStreet) -- David Swensen has made a name for himself as the head of Yale University's $16 billion-dollar endowment.
While his successful investing style involves holding assets that have traditionally been out of reach for the average investor, this has not stopped them from trying to mimic it. In fact, his method has become so well known it is now referred to simply as the "Yale Model."
Swensen, who received his BA and BS from the University of Wisconsin in 1975, wrote his dissertation for his PhD at Yale's school of Economics on the valuation of corporate bonds. The dissertation land a job on Wall Street with Salomon Brothers where he had gathered data for a team.
Swensen made Wall Street history in 1981 with Salomon by structuring the first-ever swap transaction. That led Lehman Brothers to hire him the next year to run the firm's swap group.At Lehman, he was approached by Yale which was interested in hiring him to manage the university's endowment then valued at $1 billion. Although he had no prior experience managing an endowment and the new position would come with a big pay cut, he took the position and has remained there since. In his 24 years at the helm he has returned average annual gains of 16.3%. This successful record was tainted recently when, in the midst of the worst of the global economic recession, the endowment reportedly lost nearly 25% of its value. This was largely due to its heavy exposure to energy and real estate.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV