Wednesday, September 3, 2008

Harvard Learns to Earn!

When talking about alternative investments the conversation usually steers toward the Yale University endowment. The investment committee at Yale have allocated over 70% of its portfolio to alternatives and have performed remarkably. But they aren't the only smart guys on the block.

In the Common Sense section of today's Wall Street Journal it was reported that the Harvard Endowment has earned between 7% - 9% on their portfolio, even though the official numbers have not been released yet. They did this over the same time period that the S&P 500-stock index has been down over 15%. That is a minimum of a 22% difference!

Harvard reports that it has 33% of its overall portfolio in real assets, which kept the fund from having a treacherous year. The total of alternative investments in the portfolio is reported at 62%.

The most thrilling piece of news is what the author, James B. Stewart, says about his own investment style - Mr. Stewart is also a columnist for Smart Money Magazine and SmartMoney.com. He writes "...I've been moving in the Harvard direction for some time... So far, it's benefited my portfolio just as it has Harvard's."

Take action to learn about alternative investments today! Your portfolio's future may just depend on it!

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