This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

Get Schooled in Harvard Fund Management

Harvard Management Co., steward of the Harvard endowment fund, closed the books on another year, as of June 30, and the results are starting to come out. The full report hasn't been released, but according to The Wall Street Journal, the fund rose 8.6%, compared with a 14.8% loss for the S&P 500.

Harvard has posted a comparison of allocations from June 30 and a year earlier. The mix can be easily replicated with ETFs but not necessarily the exact holdings. The following is a breakdown.

Domestic equities: iShares S&P 1500 Index Fund (ISI) is a broad-market product comprising large cap (S&P 500), mid-cap (S&P 400) and small-cap (S&P 600). For better or worse, ISI, or any similar fund, is the U.S. market. Over the last year or so, the U.S. has been in a bear market, so the fund has done poorly. When the next bull starts, the fund will rebound.

Developed foreign equities: WisdomTree DEFA High Yielding Equity (DTH) is a smaller fund than iShares MSCI EAFE Index Fund (EFA) but I think DTH is the better mousetrap. EFA has 20% in Japan vs. less than 1% for DTH. DTH is much heavier in financials, 43% vs. 24%, but over the past year, the two have performed about the same, which I believe sets the stage for meaningful outperformance whenever the financial crisis finally ends.

Emerging market equities: SPDR Emerging Markets ETF (GMM) is heavy in all the things that did great on the way up and lousy on the way down, including Brazil, China, and energy and mining stocks. As with ISI, GMM is simply a proxy for the space. Most of the time you want to own these regions of the world but occasionally they go down a lot.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,214.65 +240.34 1.42%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,570.6170 +21.3910 0.47%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs