Mike Hennessy, co-founder and managing director of investments at $9 billion Morgan Creek Capital Management, doesn’t think so.
The “endowment model” practiced by most of the big university endowments and many big foundations (but also by some astute smaller endowments and foundations) has overwhelmingly outperformed virtually all other models over any reasonable time period, and has done so for a very long time now…The model employs the broadest asset allocation possible, literally encompassing all asset classes globally and virtually all strategies globally.
Hennessy’s comments also touch on the role that ETFs play in making this type of model available to all investors, not just the endowments.
One relatively new twist on the model is a result of the industry having evolved to make available a staggering array of efficient, inexpensive and highly liquid investment vehicles such as ETFs (Exchange Traded Funds) and other liquid investments which make it easier, more effective and less punitive than ever to infuse liquidity within the model.
The expansion of the ETF universe has made possible our Arrow DWA Balanced Fund (DWAFX) and Arrow DWA Tactical Fund (DWTFX). As a reminder, last month the Arrow DWA Tactical Fund (DWTFX) completed its conversion to a global macro style so that the strategy is now aligned with our Systematic RS Global Macro strategy which is available as a separately managed account.
Click here to visit ArrowFunds.com for a prospectus & disclosures. Click here for disclosures from Dorsey Wright Money Management.
