We Study Billionaires - The Investor’s Podcast Network TIP265: Mark Yusko - The Endowment Model of Investing (Business Podcast)
Oct 20, 2019
In a captivating discussion, Mark Yusko, Founder and CEO of Morgan Creek Capital Management, shares insights from his extensive experience managing endowments. He explains the endowment model of investing, emphasizing that asset allocation often drives returns more than security selection. The conversation also highlights portfolio construction as a crucial yet overlooked aspect of investing. Mark offers advice for new investors, advocating for proactive engagement regardless of age, while critiquing current market trends and the importance of understanding asset valuation.
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Endowment Model's Edge
- The endowment model outperforms by focusing on alternative assets and innovation.
- It prioritizes illiquidity premiums and long-term secular trends, differentiating top endowments.
Career Start
- Mark Yusko's career started by taking over a retired colleague's fixed income portfolio.
- This experience grounded him in bond markets before transitioning to equity research, learning about value investing and quantitative analysis.
North Carolina Turnaround
- Yusko improved North Carolina's endowment by using a disciplined process and rebalancing.
- He also incorporated hedging strategies and recognized market bubbles, leading to significant gains.
