Yale SOM Asset Management Webinar 9-26-19

Yale SOM Asset Management Webinar 9-26-19


– Hello. Welcome to the beautiful Evans Hall in New Haven, Connecticut. My name is Emily Whitehouse
and I’m here to bring you the Yale School of Management’s
Asset Management Webinar. I’m, once again, Emily Whitehouse. I’m associate director of admissions for management and masters programs, specifically our new
Asset Management program, and I’m joined by Professor Toby Moskowitz who is the program chair for
this exciting new program. First, let’s get started by
just having a brief rundown of the agenda for this program for today. What you can expect is that we will be answering
your questions live here. In addition to that, we
will have a brief overview of the Yale School of Management, its mission and core objectives, and also just a broader
conversation between Toby and myself about the Asset Management program. Briefly, before we go into
Yale School of Management in a more general sense, I want to share a little bit about Toby. First of all, thank you so
much for joining us today. – No problem. Thanks,
everybody, for being here, too. – Yeah, it’s very exciting
to have you here with us. Just a little bit about Toby. In his role as program chair, he is essentially one of the
architects of this program, creating the curriculum, working with our senior faculty members. In addition to that, he will be bringing some
major thought leaders in the world of asset
management and in finance to join us for the Colloquium Series, which will be a part of
this program as well. So, before we roll into some
other thoughts from Toby, I just wanna talk a little bit about his many accomplishments.
(Toby chuckles) He was named the inaugural Dean Takahashi Professor of Finance at Yale SOM in 2016, also recognized by the
American Finance Association with its coveted Fischer
Black Prize in 2007, awarded biennially to the top
finance scholar in the world. In addition, his work has been cited in the Wall Street Journal,
The New York Times, the Financial Times, and in a 2005 speech by former Federal Reserve
Chair Alan Greenspan. Professor Moskowitz has an ongoing consulting relationship with and is a principal of
AQR Capital Management. Toby, if you wouldn’t mind sharing just a little bit more about yourself. I know I gave everyone
a bit of a primer there, but share a little bit more about yourself in your role here at Yale
School of Management. – Sure, a little bit of background for me. I spent 17 years at the
University of Chicago and was the Fama Family
Professor of Finance there before coming out to Yale. Both are great schools
and great departments. At Yale, we’ve been really
building the finance group, which was already world-class, and now, with a few more colleagues that we’ve added as well, is really one of the best
finance departments in the world. In particular, one of the things that, you know, we’ve been excited about was bringing a specific
asset management program to business schools, and
Yale has been very good and very innovative
about having us do that. But a little bit more about me. Some of what brought me out here, too, was my connection with AQR Capital who I’ve been working
with for about 12 years. They’ve been pioneers in
quantitative asset management. Just to be clear, we’ll go
through some of the curriculum in a little bit, but the
program is not purely designed for quantitative asset management. That’s one part of it. My partner in this, David Swensen, who runs the Yale Endowment Office, obviously has a different approach, particularly in private
equity and other things that a lot of the quant
world doesn’t deal with. We want our students to
be exposed to all of that, and I’ll get into more details later. But that’s been one of the
exciting things about Yale. I think Yale is one of the only places that can kind of bring
both practice and academia and cover the spectrum of things in the asset management world, given its location, its history, and the world-class faculty we have. – Yeah, great. Thanks so much for sharing
a little bit more there. Let’s take a moment to talk
just a little bit more generally about Yale School of
Management and its place within the greater Yale
University framework. Of course, our mission
is to educate leaders for business and society. This has been our mission
pretty much since the onset. The school was founded in the 1970s and was offering a masters of private and public
management at that time. In 1999, it began to offer an MBA program. Since then, there’s been a development of a full suite of programs ranging from executive programming, an MBA for Executives Program, also a number of one-year
Management Masters Programs, a Master of Advanced Management program, as well as some PhD programming, too. Let’s talk a little bit
more about our mission to educate leaders for
business and society. There are three key strategic objectives that you’ll know within
our greater mission, and that’s to be, first of all, most integrated with our home university; in addition, to be the most
global US business school; and also, to be the best
source of elevated leaders across all sectors and regions. For starters, with regard
to being the most integrated with our home university, we really feel that we are most integrated with the greater Yale campus. Essentially, in having
a Yale SOM community, you also are part of the
greater Yale community, too. That’s actually by design. That is because we feel that there are are so
many amazing opportunities to connect with world-renowned faculty and thought leaders in this space. Also, it’s just an incredible place to be, so many robust ideas and thoughts that can kind of be pulled in there. But also, to be the most
global US business school. We are one of the key founders of GNAM, the Global Network for
Advanced Management, in which we collaborate with 29 other top business schools across the globe. And so, we have those
amazing global relationships and our strategic global initiatives that we’re always thinking
about the bigger picture, beyond New Haven, of course. And then also, to be the best
source of elevated leaders across all sectors and regions. We feel that, through
those two first objectives, you will kind of get a sense of that, but also, we have an
incredible alumni network and a community that just
really cares about giving back. Our goal is to train leaders
to really think critically and to think broadly
about the greater trends, topics, and issues that kind of converge at the avenue of both
business and management in the greater world
context, and thinking about, thinking strategically about problems and all of the different
stakeholders and challenges that exist therein. With this new program, there’s a number of opportunities here. Talking about the extraordinary
depth of this program and also it brings in some
really unparalleled access to the greater Yale community. If you could, Toby, take us
through a little bit more about kind of yours and David’s thoughts on the development of this program. Why Yale? Why now? Tell us a little bit more about that. – Yeah. A program like this,
I’ve been thinking about for, you know, certainly
the last five years, and it was something that
I’ve noticed, you know, I work in the asset management field both academically and in practice, and what I typically find,
at least in practice, is firms hire PhDs who have
been trained for six years or they hire people fresh out of school and then end up training them themselves, and there’s not really
a great training program for the depth of asset management. An MBA program, which is a great degree, gives you a sense of some of
the issues in asset management, but it’s not geared
towards an entire career just in that industry. You have to supplement
it with other classes. And so, I always felt there was a need to have a specific asset
management-type program. Other schools have started
masters in finance programs but they’re not geared
towards asset management and they’re very largely, you know, about sort of the academic side, and some of them are very good, of course. This program is unique in the sense that I think we’re gonna
have both the academic side and then as well, with David Swensen and some of my partners at
AQR and other firms as well, coming in to teach courses,
not just giving colloquia but also to teach some of the courses that academics don’t know how to teach because we don’t do it every day, I think will be just extremely unique and a huge win for students that wanna get into this business. For example, we’re gonna have courses that talk about implementation
and risk management. As an academic, I have the
luxury of not having to worry about trading costs,
(Emily chuckling) have to worry about clients, have to worry about
even regulation, right, because I’m just talking about
the theories and the data. We wanna bring in people
who can talk about, well, here’s how you apply that theory when you’re faced with all those. And, in keeping with the nature of broad, of having greater access
to Yale in general, we’re gonna have a class
taught by a faculty member from the law school who’s
gonna talk about something that’s very important in this business, which is not just the nuts
and bolts of how to invest but fiduciary responsiblity,
the legal environment, how to do right and do
well at the same time. And so, having that perspective
from one of the, you know, our renowned law school here
at Yale, will be really great. As well as, you know,
courses in statistics and computer science
for more the, you know, computational part of it as well. I don’t think there’s any
other program that’s like this. I think Yale’s in a unique
position to pull it off for a couple of reasons. One is it is in a nice location, being near Fairfield County, and between the Boston
and New York corridor there’s a lot of (chuckling)
firms in this business that I think make it attractive, both in terms of getting
some part-time faculty from practice to engage here as well as internships and other things that our students hopefully
can be facilitated. In addition, and I think it does, you know, almost goes without saying, but I’m obviously gonna say it, having the Yale Endowment Office here with its unbelievable track record and, more importantly than that even, the way they pioneered the
business of endowment management and changed the entire model, as well as their unbelievable standards for doing well and being
a part of broader society and combining the asset management world with the greater society is something that Yale has
fostered for a long time and something that Yale’s very proud of, but you have this unbelievable access to one of the greatest investors, investment organizations of all time, and they can just bring in
a whole world of expertise that almost nobody can. So, I think it’s exciting
to partner with that. That doesn’t mean we’ll
always agree, by the way. There’ll be times,
(Emily chuckling) when the academic side
and the practical side will, you know, oppose
each other a little bit, and that’s actually nice
because we want the students to understand and appreciate the issues and figure out how do we make this work. That’s gonna be the nature of it. So, we’re really excited for the program. What we really want are students, and we’ll talk about this, students who are fully engaged in this, wanna work really, really hard, and learn these issues from
the best in the business on both the academic
and the practical side. – Yeah. Great, thank you so much. I put up just another quick slide. I’m just sharing a photo of
Toby as well as David there. Now, let’s talk briefly
just a little bit more about the asset management curriculum. It’s not something that we’ve
discussed in the broader sense on our website at this point, so this is kind of a little
bit of a sneak peek from Toby, which is really nice for
our viewers, I’m sure. If you wouldn’t mind sharing a little bit about the curriculum that
you’ve been developing, maybe some thoughts and theories about why you feel this curriculum is going to help to develop one in the field of asset management. – Yeah, no, happy to. Let me start with just what
my colleagues here at Yale can teach on the academic side. You’re gonna get, for
instance, a course from me on quantitative investing, which is a mixture of the
academic theories and models which I’ve spent most
of my life working on, as well as the implementation
of some of those things through my work with AQR and other firms that I’ve consulted with on
how that’s actually done. That’s one set of tools. Quantitative investing tools, people call this factor investing. If you don’t know what
that is, that’s fine. That’s what you’re gonna come here for. But it’s going through, essentially, 50 years of academic
science in financial theory and financial empirical work, and looking at how that’s
used today in the world. In addition to that, we’ll also
be talking about how we take not just the quantitative
and academic view but also a fundamental
view of asset management, which David Swensen and
many of his colleagues have pioneered, whether this is in, and in particularly in illiquid assets like real estate and private equity, how to think about that when, you know, the quantitative tools that I’ll use require a lot of data
and a lot of methods. Well, what do you do when you’re talking about private equity
where there is no data? How do you approach that problem? But what I think you’re gonna
find, when you come here, is there’s a set of principles that we’re gonna try to
bestow upon our students that say you always wanna
approach the problem in this way. Whether it’s using data, using theory, using intuition or other things, it all comes down to
those first principles. That’s a course that David Swensen and I are gonna teach together, which
I think will be really fun. – Oh, yeah. – We’re still developing
that particular curriculum, but that’s gonna be
something that we work on. In addition to that,
we’re also gonna teach you certainly a set of methods. My colleague here at Yale, Bryan Kelly, who also works with AQR
but is a professor at Yale, he’s one of the world’s
experts on machine learning and big data science applied
to financial economics. He’s gonna teach a rigorous course on the latest state-of-the-art
of those techniques. That’s on the quant side. On the other hand,
we’re gonna have experts in private equity who’ve been
running this for many decades talking about the ins and
outs of how do you make a deal and how do you get sourcing
for investment for these deals. We’re gonna have practitioners
talking about markets like risky credit that most academics never get to touch or see data,
and how you deal with that. We’re also gonna be talking
about lots of heavy theory on the academic side, asset pricing theory and other investment theory concepts and how those are applied today, as well as, I mentioned
before, the legal issues and the risk management issues and even client relation issues. Those things are gonna
really prepare you well for this industry. Because typically what
happens in this industry is, you know, we see this all the time, we hire people that are really
good at the computer side, at the computational
side and the mathematics, but they don’t know how
to deal with clients, they don’t know how to
navigate the legal environment, they don’t know how to think
about all these other things that, if you’re gonna have
a career in this industry, you really need to think about. So, many of you are
just gonna be beginning in this industry, and that’s fine, but having an appreciation
for what the whole firm is trying to do and how
your skill set can be used to improve the investment process and everything that the firm does is gonna be very valuable
for your careers. What typically happens at these firms is that gets trained on-site
but it’s a very slow process and it means the growth is
slower for the individual. So, what we’re hoping is our students can be plugged in on day
one and actually contribute in a much broader way to these firms. We’ve reached out to some firms who are excited about that prospect, and something that we’re hoping will make this program successful. – Oh, that’s great. Thank you so much. Essentially, we’ll kind of go into now a little bit of thought on who this program is really designed for. Now, of course, there are
people that might not fit these exact criteria,
but this is kind of who the program was designed, with
these individuals in mind. We’re looking for someone with
0-3 years of work experience. Also, a proven proficiency
in quantitative coursework. A demonstrated interest
in asset management and related topics. The length of the program, it
is a nine-month commitment, so technically a full year if you account for summer and such and living here in New Haven,
if that’s what you plan to do. And then also, the
program will be full-time. We’re thinking it will be
weekday evenings and Fridays. Tell me a little bit more
about the time commitment in terms of the classes
and things like that if you’ve given that some thought. – Yeah, it is full-time in the sense that you’ll
be taking four full classes and maybe a half class at
Colloquium, but four full classes. However, the classes are gonna meet in the evenings and on Fridays. The reason we did that is we
strongly encourage students to be working either at an
internship during this program or, what we’re hoping is some students, some of our students will
actually have full-time jobs at some of the nearby
firms, who are coming, these might be first-
or second-year analysts, but they might be coming
in the evenings and Fridays to take these courses as sort of training while they’re on the job. We’ve actually approached
a few firms about this in the local area, in
Connecticut and New York, and they’re quite excited
about that prospect because it is only nine months. Now, I’ll warn you, it’s
gonna be a long nine months, a full boat of classes
(Emily laughing) plus working an internship, but at the end of that nine months, you will be in fantastic shape to have a really promising
career in this business. And so, that’s what
we’re hoping to achieve. I think if you don’t have a current job or don’t have a current internship, you obviously can be here full-time but we would hope you would
be engaged in something during the week that will help, because we know, in this
business, having that experience and doing it along the way we
think will be really valuable. Hopefully, the program can
help in that regard, too. – Yeah, that sounds great. Just to kind of piggyback
off of what Toby shared, who we’re looking for for this program, I mean, there’s no specific
secret (chuckling) recipe for the perfect candidate here, of course. We’re looking for someone who
has an intellectual curiosity and an academic preparedness to take on the rigor of this program, and just an interest, an acute interest in the field of asset management. Now that you’re interested
in applying, (chuckles) let me tell you a little bit
about our application process. Now, the application is live
on our website right now, if you went to som.yale.edu. It’s been live for a couple of weeks now but we did a hard launch,
so to speak, last week. And so, we hope that you will apply, if you feel academically
prepared to take this on. The application deadline
is January 27th of 2020, with an admissions decision
release date of April 21st. Now, what you can expect is, to complete the online application, we will need transcripts from all colleges and universities that you’ve attended with grade titles and
grades received as well. There will be a need for a one-page resume outlining your academic and professional background and experiences. We are looking for either
GMAT or GRE exam scores. We do not have a preference there as to which one you provide. Either one is fine. We are looking for two
letters of recommendation. Now, one of those will come from someone in the academic world. That could be an academic mentor or perhaps a professor whose
class you’ve been a part of. And then the other letter
would be from someone who is either a supervisor
of an internship experience you may have had or
someone you worked under. The essays, there are two. There are two 300-word essays, one which will be: What is your interest in earning a degree in asset management? Now, this particular essay will kind of address
your short-term goals, so think about it in that respect, whereas the next essay
is: What do you hope to do in the field of asset
management with this degree? So, that will kind of address
your long-term interests within the field of asset management. In addition, we will need TOEFL or IELTS exam scores, if applicable. That’s if your native
language is not English or if you’ve earned your
degree at a university that was not an English-speaking
college or university. And then video questions. Once you’ve submitted the application, you’ve paid the application fee, you will be asked to submit the response to just one quick video question. There’s no special preparation
required for this component. You can coach yourself using
some basic interview questions. It’s pretty simple. Just be yourself, be authentic. It’s a great opportunity just
for the Admissions Committee to put a face to the
name of your application. And so, aside from that, the application fee is $95. There is an interview by invitation, though it is not required for admission in this particular program. We, of course, want to make
this program accessible to all. The tuition is listed there on the slide along with living expenses. Loans and scholarships are
available to those who qualify. We have merit-based scholarships
and these are awarded at the time one is
admitted to the program. Of course, our tuition
is still to be determined for the upcoming year. Is there anything there that
I may have left out, Toby, that you can think of that’s important to think
about with the application? – As usual, you covered it.
(Emily chuckling) The only thing I tell my students when you’re thinking about
letters of recommendation is it’s always helpful to
get people to write for you who know you well. That’s more important than a famous name who doesn’t know you as well. The more we get to know you, the better we can make an assessment. – That’s a great point. Absolutely. And I’m happy to address
any questions you may have about the application with regard to kind of offering the Q&A feature within Zoom. So, please feel free to
submit your questions, if you haven’t already done so through the Q&A feature in Zoom. Beyond this webinar, we do
have a limited amount of time but if you have questions
that were not addressed here, feel free to email us at [email protected] and we’ll be happy to answer
those for you promptly. We’ll start by taking some questions – Sure, yeah.
– from our audience. First question here is: Would
this qualify as a STEM degree? (Toby chuckles)
(Emily laughs) – Great question. I’m gonna say confidently
that I think it will. We have not gotten the
official approval yet, at least that I’m aware of,
right, but it is in the process, and that’s what we’re hoping to do. There’s no question that the
course content should qualify. It’s just a question of jumping through the right bureaucratic hoops, which is in the process.
(Emily chuckles) We’re hoping before,
certainly before January, I would say,
– Yeah. – we’ll have a definitive answer on that. But very, very likely. – Yes, well, that’s
great news for a lot of – Yes, I know that’s
– people looking into – an important question.
– this program. (chuckles) – Great question. – Okay. Could you expand on what you
mean by proven proficiency in quantitative coursework? – That’s a good question. I can tell you what I think it means, and it’s not the same for everybody. If you’ve taken quantitative coursework at the undergrad or graduate level, we’d like to see those courses. I’m okay, as I tell even my students, that even if you didn’t get an A+ in it, as long as you took something
rigorous that pushed you and you know how to do some things, that’s what I’d be looking for. Now, that can be, quantitative can mean that could be in physics,
applied mathematics, computer science, but some scope
of quantitative techniques, which will be a big part of the program. It’s not exclusively
a part of the program, there are definitely
other parts of the program that don’t use the quantitative tools, but certainly a large
chunk of it is something that we want our students
to be prepared for when they go into the
asset management field. And, quite honestly, asset management is a quantitative field. – Mm-hmm.
– That’s why I think it will, it’s gonna qualify for STEM status, and so you need to have those
skills in today’s environment. And so, any way you can
demonstrate that would be great. Test scores obviously help, too, but I think more importantly
for me would be coursework and the types of courses you’ve taken. – Yeah, absolutely. And so, we’re looking for, you know, some advanced mathematics courses, we’re looking at calc–
– Statistics – Yeah.
– is really helpful. Economics courses can be helpful, too. – Exactly. – But the hard sciences certainly as well. Those techniques will be useful. – Yeah, sounds great. Next question. How useful would the
program be for someone looking forward to a career
in investment banking? – That’s a good question. It is not gonna be a program geared towards investment banking. It’s gonna be more geared
towards asset management. Having said that, a lot of
the tools and the skill sets could be useful for that. But I don’t, you know, I
don’t wanna lie to you. I think, you know, that
most of the coursework, most of the problems we’re solving, most of the practitioners
we’re bringing in will be from the asset management side. Now, that’s pretty broad. That doesn’t just mean the buy side, it also means the sell side, so you’re gonna be talking about people who work at hedge funds, mutual funds, as well as pension funds, endowments, people who wanna go into
the regulation industry and think about securities regulation and things of that nature. It covers a fairly wide gambit. Part of that will also
be investment banking but it’s not specifically
geared to investment banking. On the other hand, I
don’t know any program that’s specifically geared
to investment banking. I mean, you know. (chuckles)
(Emily chuckling) So, there are certainly some courses that would help you in that, but that’s not the primary purpose, you know, just to be clear. – Yeah. Okay, great, thank you. What will the class size
be for this program? That’s a great question. – To be determined.
(Emily chuckling) Just thinking about the long term, we don’t know quite what
the demand will be for it, so my initial thoughts, just on the very limited
information I have, is, you know, I think in steady state we’re thinking about maybe
50 students in this program. Could it be 75? Sure. Could it be 25? That’s also possible,
depending on the demand and the quality of applicants that we see. I could be surprised. It could be, five years from
now, there’s hundreds of, you know, class sizes
of hundreds of students. I don’t believe so. I think we’d like to
keep it small and elite, so in my mind, I’m thinking,
you know, 50 students, maybe a little less than
that the first year. If it’s even half of
that, that would be fine as long as it’s elite, small, and everybody’s getting
a lot of attention. The design is not to make
it a very big program. We want you to interact with David Swensen on a one-on-one basis. We want you to interact with
the world-class speakers we’re gonna bring in. And so, I’m gonna say, you know, 25 to 50, but let’s see what the
applicant pool looks like. And I think it would be a nice group where people know each other really well, get to know the professors and the people coming in really well. And if there’s much more demand than that, well, then we’ll reassess.
– Yeah. – We may end up running, you know, (Emily laughing)
we’ll see what happens. It’d be a good problem to have. – I was about to say that,
exactly. (both chuckling) I couldn’t think of–
– But small is what we want. – Yeah, small, niche, a tight-knit group that is really, you know,
– Yes. – excited and interested.
– Big enough that there’s positive externalities and interactions, but small enough that you
feel like you’re getting a lot of attention from, again, the people that a lot of people
wanna get attention from. – Yeah, it’s a big time
commitment and we understand that, and so, we wanna make it the most robust that we possibly can, I think,
is both of our goals there, from the admissions standpoint
and the faculty standpoint. One other question that we have here is: How much prior financial
knowledge is required? And to piggyback off of this, someone is saying they don’t have a very strong quantitative
undergraduate background, so they want to know if taking
math or programming courses through external programs
such as Coursera, if that would help them to compensate in that aspect of their application. That’s something I’ve
actually been wondering about. – Yeah, no, two great questions. Let me start with the financial one. You don’t have to know
anything about finance. This is why we’re targeting
early career students. If you studied physics as an undergrad and decided I just wanna learn finance but I have some math
skills, this is perfect. You’re gonna start from day one. I don’t care if you know
what a stock or bond is. I don’t care if you know
anything about financial markets. That’s what you’re gonna
come here to learn. That shouldn’t deter those
that do know something about financial markets. If you come here, I guarantee you’re gonna learn something new. But within the first couple of weeks, everyone’s gonna be on the same page. So, whether you’ve seen or
heard of financial terms before or you have no clue what those things are, it’s not gonna matter. Everybody’s gonna be on the same page within the first month. It’ll be very–
– Speaking the same language. – Speaking the same language.
(Emily laughing) That’s all it is, is jargon. We actually encourage students that are just interested in this field that know nothing about it, but you do have to have
the quantitative tools. That’s an important thing. So, to the second question, if you feel like you
need to bone up on those, absolutely courses on Coursera would help. Some recommendations that I
think would be useful here. Certainly, applied math
courses, statistics courses, and some computer programming,
all of those will help. You’ll get that along the way, too, but it would certainly make
your experience from day one a bit smoother if you’ve
at least seen it before or have done a little bit of it and can kinda hit the ground running. Now, what that means is, you know, for instance, right now,
a lot of people use Python in the asset management world. I actually don’t know Python myself. I program in MATLAB. But I’ve done enough programming
that I can pick it up or pick up the idea
behind it if I need to. So, I don’t think you
necessarily need to look for a specific language, as
long as just some experience in some of the statistical
and computer science tools that we might be using. And so, I think that will always help. – Great. – I tell my kids this all the time. You can never have too
much of that stuff, right? It never goes away. It will always help you. – Yeah, that’s great. That’s great advice. And so– – They hate it when I say that,
by the way. (Emily laughing) – Eh, who doesn’t? (chuckles) Another question. This is one that I can probably answer. In terms of GMAT or GRE scores, is there a cutoff or a target
or a score requirement? Now, we have no minimum GMAT
or GRE score requirements, and, of course, this
being the inaugural year of this program, we really can’t speak to a specific data point of this is exactly the quantitative or
verbal score that you need to gain access to this program. We’ll have more information about that once we build out this first class and kind of get a sense for
kind of the median score that students have and are
successful in this program with. So, with that being said,
there is no minimum GMAT or GRE score requirement there. Also, one other question
that I got is, hmm. How can you explain, oh. Could you explain
merit-based scholarships? What criteria are you looking at and the range of the scholarship amount? Yes. Merit-based scholarships are such that they are given at
the time of admission. I imagine we’re going to have a lot of incredible applications, a really strong applicant pool. And so, based on that
strong applicant pool, we’re able to offer
merit-based scholarships to some individuals that have demonstrated
academic proficiencies, students that we’re really excited about having in this program. And so, we’re able to offer scholarships of somewhere in the
range of $15,000 per year all the way up to the
full cost of tuition. And so, that would be kind
of what that would look like. Now, there are external scholarships that you could certainly apply for. We have a lot of great resources on som.yale.edu to look into. And also, there’s
probably some individuals that will be financing themselves or will have some sort of… – Corporate sponsor?
– Yeah, a corporate sponsor. Thank you. (laughs)
– Companies sponsoring them. – Lost my word there.
– I mean, one thing I will say, you know, in
my short time at Yale, Yale has had a very long tradition of being very generous
with their scholarships. It’s one of the things that
the university is proud of, one of the things in particular
David Swensen is proud of and, you know, the money
he’s raised at the Endowment, a huge chunk of it has
gone to scholarships. So, I would encourage
you to think about that because Yale, I would say, is more generous than most places. At least historically, that’s
certainly been the case. We hope that’s gonna be the
case with this program, too. – (chuckling) Yes.
– And that’s one of the things that we benefit from being
part of the broader university. – Exactly, great. Thank you for that. One other question here is: How relevant is the program
for a career in private equity? – Oh, I think very relevant. I’m not a private equity expert. I’ve written a little bit about it but I really don’t know
how to do it in practice. This is something that, you
know, certainly David Swensen who has had a remarkable
track record in private equity and knows some of the best private equity investors in the world, and many other people who
teach in the program do, too, we’re bringing those people in. So, we absolutely expect
many of our students to end up in the private equity sector, some of them naturally. We know that’s a hot area right now and we are having more
than a couple of courses that are gonna be geared
to that kind of analysis. Even broader than just private equity. Some courses will be geared
toward just evaluating all kinds of illiquid assets. But we’ll have a specific
couple of courses just dedicated to early- and
late-stage private equity, which will include,
you know, buyout funds, there’ll even be some stuff on venture, but just more broadly than that, early- and late-stage
entrepreneurial investing and how to invest in that from both the buy and the sell side. We’re hoping a lot of students will end up going in that direction. – Yeah, great. Actually, a question
on, a similar question on real estate investment. Is this degree a fit for someone interested in
real estate investment? – Yes, again, the broader
skills will be useful. – Okay.
– We won’t spend as much time on real estate per se. Real estate is also, you know, there’s a lot of different issues there, but that will be touched upon. I don’t wanna say that this is a program that will train, you know, specifically real estate investors. I think there will be a couple students that will go into that business
and will use the skill sets that they learned from this course, as well as there’ll be,
we’ll bring in some speakers who have been very successful
real estate investors, but it’s gonna cover everything
from public securities, bond markets, currencies, commodities, derivative securities, to
private equity and real estate, to even real assets. You know, Yale Endowment
has famously invested in things like timber and other things. How you evaluate those
investments is something that I think no other
program really touches and we actually have the
expertise to talk about. So, a full range of topics,
and we’re hoping to attract, which is also nice about
having a cohort of students that might be interested
in different aspects of the asset management industry. I think it’ll be really exciting. – Okay, great. Question for me: What is the different between this program and the Silver Scholars Program? For those of you in the
audience that are not familiar with the Silver Scholars Program, this is an opportunity for students to join Yale SOM for an MBA direct from their undergraduate studies. The way in which this program differs from the Silver Scholars Program is that for Silver
Scholars, pursuing an MBA, which is the typical path here at SOM, they join us direct from undergrad, no previous work experience, maybe some internship experience
or things to that effect, but they have strong academic backgrounds, for sure. And so, they join us,
they do the one year, the first year of the
integrated core curriculum. They’re in the core in the first year, their second year is an
internship experience, and they rejoin the Yale SOM
community for a third year, which is taking electives across SOM and the greater Yale campus, so lots of different
elective opportunities there. If an individual was interested in the Asset Management program, of course, they wouldn’t have
that broad MBA experience. They would be coming here
direct from undergrad, maybe having done some internship work in the asset management field
or something to that effect, or just having maybe
an interest in finance but also a strong computational
and mathematical background, and they would join us
for this nine-month period and earn a Master of Management
Studies in Asset Management. So, the difference is, you do the regular Silver Scholars Program with a full-time MBA, you earn an MBA. With this program, you would earn an MMS in Asset Management. Now, that being said, there is an option to apply to both programs, and if you did that, you
could apply simultaneously. You would begin with the
integrated core curriculum of the MBA program. Your second your would be the internship experience yet again. And then in your third year, you would take the Asset
Management program requirements and any other coursework
that may be applicable there. You would then graduate with an MBA as well as an MMS in Asset Management. Similarly, this could be
done as a joint degree between the MBA program and
the Asset Management program for an individual that is a part of our regular MBA applicant pool. They could begin with the
integrated core curriculum, and then in their second year take the asset management curriculum, and graduate in two years with an MBA and a Master of Management
Studies in Asset Management. So, that’s a pretty compelling
opportunity as well. Now, we are running short on time, so we just have a couple of questions left that we can answer. Let’s see here. – And, as Emily said, you can always email your
questions afterwards, and we can follow up.
– Yes, certainly, definitely. Ooh, a question about
the interview. (chuckles) Will the interview involve
technical questions? Now, as said before, an
interview is possible but not a requirement to be
admitted into the program. I don’t know that we’ve given,
you know, but we should, – It depends who’s doing–
– then it wouldn’t be a secret. (laughs)
– Yeah, I was gonna say. It depends whether we–
– Can’t reveal our secrets. – Yeah, exactly. You know, I think it depends
who’s doing the interviewing and what we wanna know in advance. You know, I’m not sure whether
you’ve done that in the past. – Yeah. I think, while that is covered
within the application, I’m not sure if this
individual has submitted or completed the application as of yet, but there is a question about the technical
knowledge that you have, what types of computer programs
you’ve learned of, and such. That is something that
is to be determined, and I think we’ll have
more to say about that probably after this first admissions cycle is built out in its entirety. I’m gonna grab just a couple
other quick questions. This is a really good one. What is the value-add of this program versus an MFIN degree or
Master in Finance degree from other schools? – That’s a great question. You know, I think there are some great MFIN programs out there,
Masters of Finance programs. Those programs are not geared towards asset management,
though, just to be clear. They do cover some topics
in asset management, certainly some cover private equity, but not from an investment standpoint. They would cover it more from just understanding,
you know, entrepreneurs and how they go about their business, typically from a corporate
finance perspective. A lot of those programs, though, just to give you a little history, they’re really born from
financial engineering. It’s really taking math and applying it to financial problems. Some of that is useful, like for options and derivative pricing, but it’s very much from the academic side. Very few of those programs
have the practical side of how you actually apply this stuff or go beyond just the
applying math to finance. There’s two things that I
think make our program unique. One is that, which is
involving David Swensen and practitioners with experience, like myself at AQR and others, applying these tools in practice. That’s one thing. The second thing, and I think even taking the practical side out of it,
from an academic perspective, most Masters in Finance
programs are a lot of theory and a lot less on the
statistics and data side. What we want this program to be, even from the academic side,
is focused a great deal on the facts and the data
and the empirical test, and it’s gonna be driven a lot by not so much the mathematics
but really the statistics, and you, don’t get me
wrong, you need some math, but the statistics of looking at the data and how you get the data
to fit with the theories and use that in practice. So, I would say, you know, the other Masters of Finance programs certainly cover some of the
same theory that we will. We feel like we can stand toe-to-toe with those other great programs, and there are some really
good ones out there, for sure, on that dimension, but
those another programs don’t have this data piece
that we’re gonna have, not to the extent we’re gonna have it. And I’ve seen these other programs ’cause obviously, in
designing this program, I did a lot of research
on these other programs. They’re not gonna have
that data science piece and they’re certainly not
gonna have the practical piece. I think that’s what makes us unique. In addition, those other
programs are not focused on asset management. One of the reasons we chose
to focus on asset management was precisely because we could
bring in the practitioners and where the data science, in my opinion, is the most interesting
and the most robust. – Great. Thank you so much for that. – Great question. – Yeah, really good one. And so, honestly, we have
time for one more question. The question is kind of
a nice one. (chuckles) What would be the ideal
inaugural cohort look like, background, career goals, et cetera? (Toby chuckles)
To that, I say, “Stay tuned.” – (chuckling) Yeah.
(Emily laughing) That’s exactly right. In my opinion, you know,
super bright students and get great jobs, right? And make us proud. And doing, not only, and I wanna say this in being serious, too, I think one of the things
that’s really important to Yale, myself, and David Swensen, is having people that know how to go about doing this the right way, which means applying the right tools based off of first principles, but also doing it the right way in terms of morally and ethically, and doing what’s right for your clients, for your constituents. It’s a wonderful business
to be in in asset management because it’s one of the
few businesses, I think, where you can do really
well, obviously, financially, and do good at the same time by making your clients and
your constituents better off. These are pension funds, labor unions, and other institutional
investors and endowments. You also simultaneously
make yourself better off. It’s great when it works. Unfortunately, I think, again, you know, it gets a bad rap sometimes in the press, usually from a few bad individuals. We wanna teach people
from the very beginning that you don’t have, no one
has to go down that path. It could actually be a wonderful career. And I think the science of
it’s really interesting, obviously, you know.
– Yeah. – Revealed preference.
– Yeah. – So, thank you. – Great, that’s great. That’s all the time we
have, unfortunately. Good news is that if you’ve
registered for this webinar, we will be sending a
recording of the webinar. As soon as one is available,
we’ll be sending that along. Toby, I wanna thank you
– Oh, sure. – once again for joining me today. Really excited to bring this
information to all of you. Please don’t hesitate to
connect with us yet again by email, [email protected] Thanks so much for tuning in today and have a great rest of your day. – Thanks.

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