Skip to main content

Harvard Touts Diversity... Rich, Rich Diversity

  • Author:
  • Updated:

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 Admits That Harvard Sucks At Managing Harvard's Money

In a blow to metaphysical obnoxiousness, the phrase "I'm a hedge fund manager at Harvard" is now obsolete.

Don't let the gate hit you on the way out. By John Phelan (Own work) [CC BY 3.0], via Wikimedia Commons

Harvard Endowment Still Sucks

But having cut out both the dead and living wood, it hopes to suck less going forward.