Unnecessary Evils

This brief piece explores unsparingly seven common defects in large-scale investment programs circa 2017

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Lunch and Learn Series: Ken Hersh, Natural Gas Partners CEO

One of the more insightful and informed students of the oil and gas game, and a founding partner at a long-time manager of Windhorse Capital, Ken Hersh, CEO of Natural Gas Partners, is at the top of our list of fertile minds in the energy patch, and we always enjoy hearing what he’s thinking.  This … Continued

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A Crash Course in Capitalism: Part I

Proving anew the all-important principle that there is no free lunch in capital markets, this data-rich piece examines the risks that stock investors seeking to earn uncommonly high returns unavoidably incur.

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A Candid Conversation about Capital Management

Of the various means that Windhorse’s principals have employed to describe and defend their labors as investment pros, none has proven more effective than the medium employed in this enduringly relevant piece: a conversation among fictional characters seeking to resolve important and recurring investment-related challenges.

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Ten More Mistakes I’m Trying to Avoid as a CIO

On March 14, 2013, Windhorse Managing Partner David Salem delivered an address to approximately 90 accomplished businesspersons organized by a highly respected financial intermediary that, for legal reasons, shall remain nameless here. The gathering’s location shall not be named either, not for legal reasons but rather because its disclosure could cause some readers to infer that the fellow who delivered these remarks has abandoned his lifelong support of the Boston Red Sox — a team whose spring training is conducted elsewhere than in the palm-graced locale in which the following talk was given.

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Imperfect Practice Makes Imperfect: Investment Committees at Work

On November 16, 2012, Windhorse Managing Partner David Salem delivered an address to participants in a symposium at Harvard University on behavioral finance and investing organized by Richard Zeckhauser, Frank P. Ramsey Professor of Political Economy at Harvard’s John F. Kennedy School of Government. As requested, David’s talk shone a bright light on aspects of investing that have proven very difficult to get right under boundary conditions common to most investment committees, i.e., decision-making by part-time volunteers meeting in an environment in which consensus comes first.

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Top 10 Mistakes I’m Trying to Avoid as a CIO

These remarks were delivered by Windhorse Managing Partner David Salem at Harvard Business School’s 2012 Investment Conference, a day-long seminar for current and aspiring investment professionals organized by the HBS Investment Club and held on February 11, 2012. The event included keynotes from David’s HBS classmates, Seth Klarman and Steve Mandel, with Seth’s participation comprising an off-the-record Q&A with David.

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Surely You’re Joking

On June 21, 2011, Windhorse Managing Partner David Salem delivered the opening keynote address to the Leaders in Investing Summit, a day-long conference attended by 400+ investment professionals organized jointly by The Heilbrun Center for Graham & Dodd Investing at Columbia Business School, Harvard Business School Club of New York, New York Society of Security Analysts, and Wharton Private Equity Partners. As noted in the agenda posted at www.wpen.org, the conference also comprised keynotes from notably accomplished investors Bill Ackman, Leon Cooperman, Joel Greenblatt, and Howard Marks. Needless to say, the summit’s presenters — unshrinking violets all — agreed fully on nothing excepting perhaps their gratitude for how professionally the conference was organized and administered.

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Dear Diary: Part III

This piece comprises the third installment in a multi-part “reminder to self” by Windhorse CIO David Salem pinpointing investment-related challenges respecting which human beings — as well as machines programmed by them — tend to make recurring mistakes.

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Taking the Long View

Using a familiar and favored rhetorical device — a conversation among the highly opinionated members of a fictional investment committee — Windhorse CIO David Salem explores important investment-related policy challenges confronting well-intentioned fiduciaries.

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Terms of Endearment

Biting the proverbial hand that feeds, this essay by Windhorse CIO David Salem assesses critically contractual norms in the money management business.

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What If: The Six Percent Solution Revisited

This essay constitutes a follow-up to Windhorse CIO David Salem’s oft-cited primer on asset allocation, the Six-Percent Solution: An Asset Allocation Primer, perhaps the most widely read monograph that Windhorse CIO David Salem has written, this 2002 piece explores premises and principles that might logically animate the effective deployment of long-term capital.

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Dear Diary: Part II

This piece comprises the second installment in a multi-part “reminder to self” by Windhorse CIO David Salem pinpointing investment-related challenges respecting which human beings — as well as machines programmed by them — tend to make recurring mistakes.

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Dear Diary: Timeless Truths about Investing

This 2001 “reminder to self” by Windhorse CIO David Salem discusses investment-related challenges respecting which human beings — as well as machines programmed by them — tend to make recurring mistakes.

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A Look Ahead

This 1999 essay by Windhorse CIO David Salem comprises discusses noteworthy investment opportunities and perils as the 20th century draws to a closes and long-term investors turn their sights to a new millennium.

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M2

This brief monograph compares and contrasts two measures of risk developed by Nobel Price-winning economists: the widely-used Sharpe Ratio and an obscure but arguably more useful metric known as M2.

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Behavioral Finance

A dialogue focused on behavioral finance and the importance of its teachings in the effective stewardship of long-term capital.

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Thinking About Risk

An address to the National Association of College and University Business Officers (NACUBO) given by David Salem during his tenure as founding president and CIO of The Investment Fund for Foundations (TIFF).

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