ITA Wealth Management is all about learning to manage your own portfolio instead of hiring a professional money manager. Here is added evidence that consultants and advisors are not adding alpha to some of the most recognized portfolios in the land.
Check out this PDF file, “The Futility of the Endowment Model.”
There several salient points in the article.
Some elite institutions – like Yale – may appear to earn alpha, according to Barber and Wang, but it does not come from selecting skillful managers or from dynamically changing asset allocations. Instead, the apparent alpha comes from the mere fact that they hold assets like private equity and hedge funds.
In other words, the consultants upon whom endowments, foundations and many advisors rely add no value.
Check out this Charles Ellis YouTube video.