David Swensen has outperformed 99 percent of U.S. mutual funds since 1985. As Yale's chief investment officer, Swensen manages the school's $15 billion endowment. Now he has a new book, Unconventional Success.
In it, Swensen takes aim at one of the most engrained institutions in modern America: the mutual fund industry.
Despite their huge growth in controlled assets in the past 20 years, mutual funds -- most of which are meant to create profits for their managers -- fail everyday investors, Swensen says.
Two of the biggest factors in his displeasure are high management fees and funds' habits of turning over their holdings.
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