My Endowment Is Still Bigger Than Yours


Remember when everyone wanted to be able to invest "like Harvard" does? (Of course this really just translated to a massive move into equities and increasing reliance on hedge funds and managers). In retrospect, you could easily called the top for endowment investing by noticing the sudden surge in related books. Between Foundation and Endowment Investing: Philosophies and Strategies of Top Investors and Institutions, How Harvard and Yale Beat the Market: What Individual Investors Can Learn From the Investment Strategies of the Most Successful University Endowments and The Ivy Portfolio: How to Manage Your Portfolio Like the Harvard and Yale Endowments, there was ample evidence that someone was in for a major crash. What was it going to take, the Harvard Shea Stadium?
So no one should be surprised to read that Harvard has pissed away $8 billion... in just four months (and that's not counting a few managers who haven't reported in yet).
No word on what will be done with the remaining $36.9 billion.
Harvard's endowment takes $8 billion hit [Associated Press]