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

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Often seen as a passion project, or part of a philanthropic venture, rare and fine stringed instruments offer an exciting option to diversify one’s investment portfolio while providing an opportunity for an exceptional long-term investment.