TY  - JOUR
AU  - Chambers, David
AU  - Dimson, Elroy
AU  - Foo, Justin
TI  - Keynes, King's and Endowment Asset Management
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 20421
PY  - 2014
Y2  - September 2014
DO  - 10.3386/w20421
UR  - http://www.nber.org/papers/w20421
L1  - http://www.nber.org/papers/w20421.pdf
N1  - Author contact info:
David Chambers
University of Cambridge
E-Mail: d.chambers@jbs.cam.ac.uk

Elroy Dimson
University of Cambridge
E-Mail: e.dimson@jbs.cam.ac.uk

Justin Foo
University of Cambridge
E-Mail: jfsf3@cam.ac.uk
M1  - published as David Chambers, Elroy Dimson, Justin Foo. "Keynes, King's, and Endowment Asset Management," in Jeffrey R. Brown and Caroline M. Hoxby, editors, "How the Financial Crisis and Great Recession Affected Higher Education" University of Chicago Press (2015)

M3  - presented at "How the Great Recession Affected Higher Education", September 27-28, 2012
AB  - Founded in 1441, King's College was one of Cambridge University's wealthiest Colleges, endowed with a vast agricultural portfolio. John Maynard Keynes was appointed bursar just after WWI and initiated a major reallocation to equities, an innovation at least as radical as the late 20th century commitment to illiquid assets by Harvard and Yale. Keynes initially pursued a market-timing approach to investment with mixed success and failed to anticipate the 1929 market crash. Thereafter, his switch to a patient buy-and-hold strategy allowed him to maintain his commitment to equities in the subsequent market slump, reflecting the natural advantages that accrue to long horizon investors. Keynes' innovations in endowment asset management, implemented over a dynamic period of capital market development and economic turbulence remain of great relevance to modern investors emerging from the Great Recession.
ER  -