Small Kresge Foundation Teaches Big Lessons in Investment Strategy – WSJ.com.

Every year, investors turn to Harvard and Yale in hopes of discovering how these revered endowment funds beat the market.

During the credit crunch, they might have been better served studying the lesser-known Kresge Foundation.

The $3.8 billion Troy, Mich., foundation returned 9.3% for the 12-month period ended in June.

That compares with a median return of negative 4.7% for foundations and endowments with $1 billion or more in assets, according to the Wilshire Trust Universe Comparison Service.

The foundation was established in 1924 by Sebastian Kresge, who started a business of five-and-10-cent stores that would later become known as the retail chain Kmart.

Kresge offers grants to nonprofit organizations in fields ranging from libraries to food banks and hospitals.

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