David Swensen to Teach Future Fund Managers at Yale

Are you a couple of years out of college? Do you want to become a fund manager? There is a new asset management program at Yale that can teach you.

The new degree program is being developed in close collaboration with the Yale Investments Office (YIO), a pathbreaking team of investors who pioneered the “Yale Model” and have outpaced all other major endowments over the last 30 years. Both David Swensen, Yale’s chief investment officer, and Dean Takahashi ’83, the senior director of YIO, will teach in the program, and students will benefit from their experience combining quantitative and qualitative considerations in investment decision-making. In addition to its unparalleled performance, YIO is recognized for developing many of the leaders in the field. The heads or founders of Princeton University Investment Company, Hillhouse Capital, and the University of Pennsylvania Office of Investments all worked with Swensen after graduating from the Yale School of Management.

Yale SOM to Launch Master’s Degree in Asset Management, Yale SOM

What will you learn after one year?

The Yale SOM finance faculty includes experts in asset pricing, investment theory, behavioral finance, hedge funds, and big data/machine learning techniques, among many other subjects. The curriculum will leverage this expertise, along with the experiences of professional asset managers, to cover the breadth of the investment field, including quantitative investment models, traditional approaches, and alternative investing. A broad range of markets and asset classes will be explored, including traditional equity and bond markets, as well as absolute return strategies, currencies, commodities, derivative securities, credit, and illiquid alternative asset classes such as private equity, real estate, and natural resources. Many courses in the asset management program will be co-taught by a finance faculty member and a practicing investor, whether from the YIO or one of the partner firms located in the region from New York City to Fairfield County, Connecticut, to Boston, Massachusetts.

According to Swensen, your humanities major should not preclude you from participating.

I think this program would be suited to individuals regardless of what their undergraduate major was. I think that it’s important that people be able to demonstrate they got some analytical capabilities but that doesn’t mean that it’s only economists, or only engineers. Some of the people that have been most successful in the asset management world came out of Yale with a degree in English.

Business schools are slowly diversifying from their core MBA program.

Yale is among universities capitalizing on the demand for specialized degrees in varying disciplines related to finance. A flurry of one-year master’s programs have cropped up over the past decade, helping bolster funding sources for schools.

The goal is to give recent college graduates an edge in an industry that is experiencing increased pressure on revenues as investors turn to cheaper index-based products such as exchange-traded funds. Money managers must now work harder to justify the fees they charge as they struggle to outperform.

Yale Enlists Endowment Chief to Help Develop New Asset Managers, Bloomberg

You can can learn more about the asset management program here:

Master’s Degree in Asset Management, Yale SOM

Looking up inside the Sterling Memorial Library at Yale.
Twitter @yalelibrary

Post by Marcelino Pantoja