This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

How to Invest Like an Endowment

Lately there has been a rash of news articles and TV interviews touting the outsized returns earned by endowment funds and so-called sovereign wealth funds, which are pools of capital that state or national treasuries set aside for investment. These commentators like to tell us we too can invest like Yale University or Norway.

Well I don't think we can invest exactly the way endowments do, but we can put our money to work in similar ideas and themes.

The big "macro" behind these funds is that they diversify across many types of assets such as private equity, commodities and various hedge fund strategies -- not just stocks, bond and cash. And it's true that there are stocks, exchange-traded funds and other kinds of securities that provide access to similar, if not necessarily identical, asset classes. Selecting a couple of these themes and adding them to your portfolio can improve your diversification and boost your returns.

The reason I say we cannot invest exactly like endowments and sovereign wealth funds is that there is no perfect substitute for some of the things they buy, and they're simply not available to small investors. For example, Jack Meyer, the former boss at the Harvard Management Company, is well known for getting exposure to timber by buying timberland in New Zealand.
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FIW $35.51 -0.34%
FXA $76.47 0.82%
PCY $28.64 0.32%
PHO $23.10 -1.30%
MOO $49.08 0.12%


Chart of I:DJI
DOW 17,820.48 -221.07 -1.23%
S&P 500 2,075.31 -19.84 -0.95%
NASDAQ 4,808.5970 -54.5440 -1.12%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs