Invest Like Ivy Leaguers

You can't copy their portfolios precisely, but you can use exchange-traded funds and notes to come close.

David Swensen is the Albert Pujols of the money-management world. Over his career, Pujols, the power-hitting first baseman of the St. Louis Cardinals, boasts a freakishly low ratio of strikeouts to home runs. When baseball historians consider that statistic along with Pujols's consistently high batting average and the prodigious number of runners he has driven in, they conjure up comparisons with such legends as Lou Gehrig and Ted Williams.

Swensen is the chief investment officer of Yale University's endowment fund. From July 1984 through June 2008, Yale's endowment returned an annualized 16.6%, an average of five percentage points per year better than both Standard & Poor's 500-stock index and a balanced index holding 60% in stocks and 40% in bonds. He achieved a 40-fold multiplication of wealth with one-third less volatility than the S&P 500 and with only one down year (a 0.2% loss in the fiscal year that ended in June 1988, the period that included the crash of 1987).

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Contributing Writer, Kiplinger's Personal Finance

Andrew Tanzer is an editorial consultant and investment writer. After working as a journalist for 25 years at magazines that included Forbes and Kiplinger’s Personal Finance, he served as a senior research analyst and investment writer at a leading New York-based financial advisor. Andrew currently writes for several large hedge and mutual funds, private wealth advisors, and a major bank. He earned a BA in East Asian Studies from Wesleyan University, an MS in Journalism from the Columbia Graduate School of Journalism, and holds both CFA and CFP® designations.