Harvard-Yale Diversified Portfolio

About June of 2007, SmartMoney Magazine published an article that described how the Yale and Harvard Endowment Fund Managers were able to earn big returns with their diversified portfolios. A portion of the article and the Harvard and Yale portfolios presented below.

Harvard - Yale Portfolios only

SmartMoney Magazine then went on to recommend funds that would replicate the Ivy League portfolio. This Harvard-Yale-like portfolio is presented below.

Money Mag's recommended diversification portfolio

I looked at the performance of this DIVERSIFIED PORTFOLIO from mid 2007 to June 30, 2013 and compared it to the performance of DIA over the same time period. The analysis is presented below:

SmartMoney's Diversified Portfolio vs DIA

Conclusion – DIA Significantly Outperformed Harvard-Yale Diversified Portfolio

The Harvard-Yale-like Diversified Portfolio LOST 22% of its value whereas the DIA fund gained 11.3% over the same six year period which included the disastrous 2008 33% market decline; the exact thing a Diversified Portfolio is supposed to protect against.

Return To “Diversified Portfolios Examined

Return To “Why No Diversification

Return To “Evidence Based Proof of Plan

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