Mgt 827 Endowment Management

Dean Takahashi and Matt Mendelsohn

(assisted by Patrick Sherwood)
Mondays, 2:40 5:40 pm
165 Whitney Ave, Boardroom
The seminar focuses on investment policy and portfolio management of tax-exempt institutional
funds, with an emphasis on endowments. The class will discuss asset allocation, risk, the role of
active management, incentive structures, governance, and manager selection and evaluation.
Course Requirements
50%
20%
30%

Written Assignments
Presentations
Class Preparation and Participation

Required Readings
Managing Institutional Investor Portfolios, from Managing Investment Portfolios: A
Dynamic Process, 3rd ed., by Maginn et al; John Wiley and Sons Inc., 2007. (ClassesV2)
Pioneering Portfolio Management, by David F. Swensen; Free Press, 2009.
ISBN: 978-1416544692; $35.00
The Yale Endowment, 2013 (http://investments.yale.edu/images/documents/Yale_Endowment_13.pdf)
Additional readings to be distributed in class or posted on ClassesV2.

Suggested Readings
Investment Analysis and Portfolio Management (9th Ed.), by Frank K. Reilly and Keith C. Brown;
South-Western, 2008.
ISBN: 978-0324656121; $269.95 (earlier editions also fine)
Dont feel obligated to buy and/or read this book, it is merely a supplemental resource
Unconventional Success, by David F. Swensen; Free Press, 2005.
ISBN: 978-0743228381; $30.00

Contact Information

E-mail

Dean Takahashi
Dean.Takahashi@yale.edu

Matt Mendelsohn
Matt.Mendelsohn@yale.edu

Patrick Sherwood
Patrick.Sherwood@yale.edu

MGT 827 - Endowment Management

Page 2

Class Schedule
January 13

Introduction, Investor Types, and Spending

Readings:
Maginn et al, Managing Institutional Investor Portfolios
Swensen, Chapters 1-4

January 17 (Friday!) Investment Approaches, Active Management, and Asset Allocation

Readings:
Swensen, Chapters 5-8
Investure LLC and Smith College
Mean Variance Analysis and Illiquid Asset Modeling
January 27
Deal Flow, Screening, and Evaluating Investments
Guests:
Seth Alexander, Chief Investment Officer, MIT Investment
Management Company
Ann Miura-Ko, Partner, Floodgate
Readings:

February 3

February 10

Swensen, Chapter 10, Risk and Reward in Venture Capital,

Floodgate Fund website, MITIMCo Website and Brochure
Assignment Due: Sourcing and Deal Flow
Internal & External Management, Coinvestment, and Compensation
Guests:
Jane Mendillo, President and CEO, Harvard Management
Company
Andy Golden, President, Princeton University Investment
Company
Readings:
Harvard Management Company, Incentive Pay at HMC
Assignment Due: Compensation and Coinvestment
Program Assessment, Leading Change, and Spending Policy
Guests:
Peter Ammon, Chief Investment Officer, University of
Pennsylvania
Anne Martin, Chief Investment Officer, Wesleyan University
Readings:

February 17

February 24

Swensen, Chapter 9, UVIMCo Case, Howard Marks note on

Assessing Performance, U Penn 2013 Annual Report,
Wesleyan University Investments Office 2012 and 2013 Year
End Letters
Assignment Due: Organization and Change and Spending Policy
The Yale Model
Guest:
David Swensen, Chief Investment Officer, Yale University

Readings:
Yale University Investments Office, The Yale Endowment, 2013
Assignment Due: Yale Allocation and Spending
Key Issues, Wrap-Up, and Q&A
Readings:
To be determined