Friday, August 22, 2014

How to Invest Like Harvard University

Harvard University is considered to be the top educational institution in the United States. So you would think that their endowment fund would have a great track record, and if it does, maybe you can follow along, and make money along side them, without even attending Harvard.

So lets start with the returns. The endowment fund is managed by Harvard Management Company, Inc. The average annual return over the last 20 years has been 12.0% per year. Not too shabby.

The fund has added 27 new positions during the latest quarter ending June 30, 2014. The new positions with the largest capital investments are as follows:

Protective Life (PL)

Covidien (COV)
Hillshire Brands (HSH)
American Realty Capital Health (HCT)
Susser Holdings (SUSS)

Energy Transfer Partners (ETP)

Protective Life, based in Birmingham, Alabama, has been around since 1907. The stock trades at 14 times current earnings and 13 times forward earnings. Earnings for the latest quarter were up 4.6%. The stock yields 1.4%.

Covidien makes and markets healthcare products, and is based in Dublin, Ireland. The stock has a trailing price to earnings ratio of 25 and a forward PE of 20. Although revenues were up in the latest quarter, earnings dropped 22.7%. The company provides a dividend rate of 1.4%.

Hillshire Brands makes and sells primarily meat related foods such as hotdogs, sausages, and luncheon meats. Brans include Sara Lee and Jimmy Dean. The stock trades at 34 times trailing earnings and 29 time forward earnings. Latest quarter revenues were up 10.6%, but earnings tanked 34.1%. The yield is 1.1%.

Maybe you can pick the best of the Havard picks and outperform Harvard. If you like interesting stock lists like this, check out the free stock lists at

Disclosure: Author didn't own any of the above at the time the article was written. 


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