The Ivy Portfolio: How to invest Like the Top Endowments and Avoid Bear Markets is written by Mebane Faber in 2009. In 2007 he wrote the white paper called “A Quantitative Approach to Tactical Asset Allocation”. On the website SSRN Top 10 this paper is clearly number 1 and it has been requested over 175,000 times.
The paper “A Quantitative Approach to Tactical Asset Allocation” is a Tactical Asset Allocation model. However, the book The Ivy Portfolio is an analyses of strategic asset allocation. It discusses the battle between the universities Yale and Harvard. In what way do they differ in investing and allocations.
The book begins with an analyses of these two universities and comes with a few possibilities how to replicate the fantastic results – in other words: ‘shadowing the Super Endowments”. This results in a lot of pages showing data and data-analyses. However, this is necessary to understand him explaining about replicating these portfolios.
The strategy of the white paper “A Quantitative Approach to Tactical Asset Allocation” is discussed in the book as well. It is used to discuss the topic Alternatives. The characteristics of Private Equity and Hedge funds are important to scrutinize. By using the motto “Winning by not Losing” the active strategy of the most downloaded white paper is shown in a very clear way.
What becomes very clear from this book is that statistic allocations is not desirably. Active management or rotating between different asset classes is the solution. With the book The Ivy Portfolio you could also say: Following the Smart Money!
OpinioPro vs The Ivy Portfolio
Due to Brexit being official now, a lot of investments will feel the need to make modifications. This is possible when based on a model. Knowing statistics while investing to gain profit is the right course of action. However, there will often be a discussion in an investing committee. The arguments that will support the investment case can be found on the research platform of OpinioPro.
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New research can be found on the platform of OpinioPro on a daily basis. However, you can also search an asset manager’s vision he had in the past. It will not be a surprise that at the moment the amount of published research on Brexit and asset allocation implications on www.opiniopro.com is enormous.
OpinioPro has currently over 3,000 investment research reports on these subjects on its platform. The best ‘research engine’ is now available without registration on www.opiniopro.com.