In attempts to get more “liberal-arts students,” Harvard Business School has come up with a groundbreaking (in the sense that several other schools do it) program called 2+2. You can lock in a place at Harvard Business School as early as your junior year of college but you have to work for two years after school. Google is one of the 30 companies on board to help HBS attract a more diverse student body.
Translation – HBS needs more women. Figuring that its pitch to girls is already something along the lines of “You will find a husband, and we will accept you if you apply,” HBS is actually attempting some subtlety. The caveat of getting in is always, “All you have to do is facilitate our well-connected, severely under-sexed male student body, and settle on one big winner after two years.” The school figures those girls aren’t going to work after HBS (marriage) anyway, so they might as well get a couple years in before the great B-school hubbie hunt.
As hard as HBS students are trying to get laid, Wharton students remain proudly repressed (closeted):
Some business schools see little value in aggressively marketing the M.B.A. to undergrads. “We don’t necessarily support the idea of a two-year deferred admission,” says Thomas Caleel, director of M.B.A. admissions and financial aid at The Wharton School at The University of Pennsylvania.
Harvard Aims to Widen M.B.A. Pool [Wall Street Journal]
Bolstered by a 44% return in emerging market stocks and a 30% boost from real estate and PE, The Harvard University Endowment Fund returned 23% for the fiscal year ending in June. The Harvard Management Company grew assets under management by almost $6 billion to $41 billion during the year.
The Harvard endowment lost about 1% of its total assets ($350 million) when Sowood Capital Management, founded by ex-Harvard Fund foreign stock head Jeffrey Larson, failed bond markets 101 in July, lost half of its assets, and sold what was left of its portfolio to Citadel. Despite bond market academic probation, the Harvard endowment was up 0.4% in July.
Harvard survived the setback thanks to a “high degree of diversification.” A microcosm of its undergraduate population, which consists of a bunch of rich kids of all creeds and colors, the Harvard Fund was diversified enough to weather the tough July market.
Harvard has beat the endowment return benchmark by almost 5% in the last five years, returning 18.4% compared to the 13.8% average annual return of the benchmark. Yale reports results next month.
Harvard’s Fund Returns 23%, Boosting Size to $34.9 Billion [Wall Street Journal]
Harvard’s endowment lost $350 million in the Sowood blow-up. The amount is a small dent in Harvard’s well-endowed $29 billion coffers (why did we need to pay $40k/year to go there again?) but comes from one of Harvard’s own.
Sowood was founded by Jeffrey Larson, former manager of Harvard’s foreign investments. Larson helped Harvard become the well-hung giant it is today, and Harvard returned the favor by investing with Sowood. The ‘Vard netted three years of gains before taking a $350 million bath.
Some argue that making crappy investment choices like Sowood underscores the fact that Harvard fund managers are overpaid. Larson, for instance, raked in $17 million in 2003, when the endowment returned just over 10%.
Why Harvard Is Smarting [Wall Street Journal]
We kid, of course. Some of our best friends are in b-school! (But only because their parents told them they had to get a graduate degree, and law school’s just so insufferably long.) Regardless of its merits, there’s good news: you might actually make some money out of this racket!
Salaries and signing bonuses for newly minted MBAs nationwide were the highest last year since the data have been tracked, said Bob Ludwig, a spokesman for the Graduate Management Admission Council in McLean, Virginia. The average salary was $92,360 and the signing bonus was $17,603.
Competition for MBAs from banks such as New York-based Citigroup Inc. and Goldman Sachs Group Inc. may push starting- pay packages above last year, when graduates averaged a record $186,174 in total compensation at Harvard Business School and $183,000 at Stanford University’s Graduate School of Business.
“I see the demand just going through the roof for this kind of talent,” said Paul Danos, dean of Dartmouth’s Tuck school in Hanover, New Hampshire. His MBA program ranks ninth in the world, according to the Financial Times 2007 ratings.
Recruiting grew so intense at the University of Pennsylvania’s Wharton School that some companies were holding 10 to 15 events each over two months, said Michelle Antonio, director of the career management office.
And if they’re not exactly banging down your door, you can still bank on your degree making you and your bride-to-be a practical shoo-in for one of those highly coveted wedding announcement in Sunday Styles. 6-1, half a dozen to the other.
MBAs May Get Record Pay as Citigroup, Goldman Recruit [Bloomberg]
The price tag on Harvard’s 2005-2006 spasm of outraged feminism just got a little bit bigger. The Wall Street Journal reports today that Harvard has lost upwards of $390 million in donations since ousting former president Larry Summers. Even to Harvard that’s a big number, amounting to two-thirds of the total funds raised in 2005.
Summers, who served as Treasury Secretary in the Clinton Administration, resigned Harvard’s presidency under fire from faculty members upset at his comments on women in science and his clashes with some prominent professors. Among those who have cancelled or reduced their contributions are Oracle’s Larry Ellison, real-estate and newspaper mogul Mort Zuckerman, banker David Rockefeller and Pequot Capital’s Byron Wien.
Summers’s Supporters Withhold $390 Million From Harvard [Wall Street Journal]