Harvard Rejects Alums’ Endowment Criticism

Aug 29 2014 | 7:20am ET

Harvard University is defending its endowment compensation, noting that its move to manage more money in-house, rather than at hedge funds, has saved the school more than $1 billion.

A group of Harvard alumni from the class of 1969 wrote the university President Drew Faust this month, blasting the amount paid to Harvard Management Co. portfolio managers. The top five, the group noted, received $28.8 million last year, up from $25.2 million in 2009.

The alumni, who have long been critical of HMC’s pay practices, said they were “astonished by what we have discovered.” The group said it is in favor of putting less money with hedge funds, but that in-house managers should be paid less.

Harvard defended HMC, saying that its “unique hybrid model has saved the university more than $1.5 billion in management costs compared to what an equivalent external management strategy would have cost over the past decade.”


In Depth

Star Fund Managers Battered By Rocky Ride In Yields, Currencies

May 28 2015 | 6:05am ET

Some of the biggest names in the investment world have been whipsawed by the recent...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

The Road To Tax Alpha

May 28 2015 | 5:36am ET

Tax-related alerts are increasingly helping investment managers harvest tax alpha...

 

Sponsored Content

Editor's Note