College endowment funds manage huge amounts of money. Last week, we focused on Harvard, which manages more than $29 billion. Another university with a sizable amount of funds under management is Yale, which has an $18 billion portfolio.

The Yale portfolio has been managed by David Swensen since 1985, and it generated an average annual return of over 17.2% over a 10-year period through 2007.

Stockpickr has compiled a portfolio of Yale University's investments.

One of the stocks that Yale owns is Celgene (CELG), a biopharmaceutical company that specializes in cancer and immune-inflammatory treatments. Last week, it was one of the 10 most-searched stocks on TheStreet.com. Celgene's earnings announcement is scheduled for Jan. 29, 2009. Although the company has recently generated negative earnings, the stock has a forward price-to-earnings, or P/E. ratio of 21, higher than the industry average P/E ratio of 16. However, the stock has a favorable price-earnings-to-growth, or PEG, ratio of 0.83, much better than the PEG ratios of Amgen (AMGN), Bristol-Myers (BMY) or Genetech (DNA), which all have PEGs above 1.20.

One of the mutual funds that owns Celgene is the Janus Adviser Forty Fund, a long-term capital growth fund managed by Ron Sachs. It has a Morningstar rating of four stars. The fund has ranked in the top 3% of all the funds in its category for the last three years. One of its top holdings is Potash Corp. of Saskatchewan (POT), with a P/E of 7 and a PEG of 1.63. In a recent video on TheStreet.com, Josephine Jimenez, fund manager of the new Victoria 1522 Fund, said that emerging-market demand will revitalize Potash. Janus also owns Gilead Sciences (GILD), with a P/E of 24 and a PEG of 1.30, and Research In Motion (RIMM), with a P/E of 13 and a very low PEG of 0.44.

Infinera (INFN), a provider of digital optical communications, is also owned by Yale. It has joined a group of other tech companies to aggressively develop and test emerging 100 gigabit Ethernet technologies. The stock has a P/E of 11.

Infinera shows up in a Dec. 6 Stockpickr portfolio called Barron's Insider Purchases. Infinera appeared on the list because one of the directors recently bought more than 60,000 shares of the company's stock. Other stocks in the portfolio include UTI Worldwide (UTIW), which has a P/E of 12 and whose CEO bought 224,365 shares, and Weatherford International (WFT), which has a P/E of 5 and a very low PEG of 0.2. Two Weatherford directors recently bought 200,000 shares.

Another Yale investment is Concho Resources (CXO), a developer of oil and natural gas properties, with operations in New Mexio, Texas, North Dakota and Arkansas. In June, Cramer said that Concho is a great stock that investors should keep. The stock has a P/E ratio of 11.

For more ideas, check out the Yale University portfolio at Stockpickr.com.

Posted on Dec. 15, 2008