Sir John Templeton once said: "Diversification is a safety factor that is essential because we should be humble enough to admit we can be wrong."
I was reminded of these wise words on diversification when I heard that David Swensen had passed away earlier this month. He was manager of Yale University's $31bn endowment and was a true pioneer, whose philosophy is very much pertinent today. IA Global Bonds sector now split into 14 new segments Swensen began managing the then-$1.3bn fund in 1985 and revolutionised the make-up of the portfolio that has been followed the world over. What has become known as the Yale Model espouses a mix of shares, bonds, private equity, real estate, hedge funds and commodities. At the time, t...
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