The British Origins of the US Endowment Model

John Maynard Keynes is perhaps most famous as a (somewhat controversial) economist. However, he was also a skilled and successful investor and portfolio manager.

This article from the most recent edition of the Financial Analysts Journal entitled “The British Origins of the US Endowment Model” describes Keynes’ management of the endowment of King’s College, Cambridge from 1921 until his death in 1946. We noted similar investment philosophies among Keynes’ management of the King College endowment and our approach at Houston Trust Company: the importance of a long-term focus, the benefits of an equity bias, and the futility of market timing. The conclusion of the desirability of broad diversification with low investment costs is also very much “in sync” with our approach at Houston Trust Company.

 

Article: FAJ-The British Origins of the US Endowment Model