Swensen: Funds of funds "facilitate the flow of ignorant capital"
Yale Chief Investment Officer David Swensen comments on the markets and Yale's investment approach in a new Bloomberg article. He asserts that Yale was not even close to investing in Madoff-run funds and rips into the fund-of-funds industry for failing to see the red flags surrounding Bernie Madoff's operation.
Swensen also calls corporate bonds undervalued, saying they are "priced at really extraordinarily cheap levels." Notably, he does not make the same assertion about government bonds, which we at The Manual of Ideas believe to be grossly overvalued.
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