Institutional investing

Jim O'Shaughnessy provides insights into institutional investing through various discussions on his podcasts.

1. Understanding Institutional Behavior: In one conversation with Alex Danco, O'Shaughnessy talks about how institutions make decisions based on new information. They also discuss how shows like "The Wire" can help understand institutional behavior and underline the importance of probabilistic thinking and having skin in the game 1.

2. Yale Endowment Replication: In another discussion with Meb Faber, they delve into the Yale endowment strategy. Faber explains how one can replicate Yale's diversified investment approach using ETFs. Yale's portfolio, which includes unconventional investments like timber and forestry, can largely be replicated with a diversified portfolio and a mix of factor-based exposures 2.

These insights highlight the slow-changing nature of large institutions and the broad, diversified strategies employed by successful endowments.