Harvard finances in bad shape

[Anonymous]

Anonymous wrote:A lot of this info is available by Google. Bet someone can ask AI to create a list, with annotations to real links/sources?

https://www.spglobal.com/market-intelligence/en/news-insights/articles/2024/11/texas-harvard-endowments-lead-the-pack-in-private-equity-allocations-86225931

There's a good image in this link - can someone figure out how to post it here? Lists a bunch of schools.

And....
UVA is listed 4th for largest private equity allocation.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Heard an interview today with Bill Ackman, hedge fund manager, alum, and donor.

Harvard’s headline endowment is $53 billion, but 75% of that is in private investments, like private equity and venture capital, that aren’t regularly marked to market value and are not liquid. He estimated that market value is 30-40% lower than stated. Further, Harvard has $8 billion of debt. Apparently, the day-to-day operation of the overall enterprise is heavily dependent on government money and annual donations.

This reminds me that UChicago is in even worse shape.

How do these great schools with so many great minds mess this all up?

ummm. this is every private T20 with an endowment. Its ALL in PE and VC. Where have you been?

Sure, but what about the rest? The borrowing? The inability to fund daily operations without the government and ANNUAL/current donations? What business runs like this, and who would have thought that such “wealthy” and distinguished ones would? Astonishing.

This isn’t the case at all top 20/25 schools.

What businesses have endowments? Endowments aren’t intended to be used to finance operations, the investment income generated by endowments are. And yes, private businesses that have government contracts rely on that revenue. You seem very confused about how the world works.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Heard an interview today with Bill Ackman, hedge fund manager, alum, and donor.

Harvard’s headline endowment is $53 billion, but 75% of that is in private investments, like private equity and venture capital, that aren’t regularly marked to market value and are not liquid. He estimated that market value is 30-40% lower than stated. Further, Harvard has $8 billion of debt. Apparently, the day-to-day operation of the overall enterprise is heavily dependent on government money and annual donations.

This reminds me that UChicago is in even worse shape.

How do these great schools with so many great minds mess this all up?

Bill Ackman has a little bit of an agenda, so I'd take his comments with multiple grains of salt.

+1 he created half the problems Harvard is facing

[Anonymous]

Anonymous wrote:

Anonymous wrote:Heard an interview today with Bill Ackman, hedge fund manager, alum, and donor.

Harvard’s headline endowment is $53 billion, but 75% of that is in private investments, like private equity and venture capital, that aren’t regularly marked to market value and are not liquid. He estimated that market value is 30-40% lower than stated. Further, Harvard has $8 billion of debt. Apparently, the day-to-day operation of the overall enterprise is heavily dependent on government money and annual donations.

This reminds me that UChicago is in even worse shape.

How do these great schools with so many great minds mess this all up?

Bill Ackman has a little bit of an agenda, so I'd take his comments with multiple grains of salt.

He is an idiot outside of his field of investing. He supported Trump not at all realizing the immense risks.

[Anonymous]

Ackman is a fool. Why would you listen to an interview by him

[Anonymous]

OP assumes it is unwise depend on government grants for research. But the government has funded research at universities instead of having their own government research facilities since the last world war, as it is mutually beneficial arrangement for both the universities and for the government, as well as being good for the scientific advancement of the country outside of industry. It wasn't on anyone's radar that this arrangement would end, because only a total nut job would want to cripple the scientific progress of their own country.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Heard an interview today with Bill Ackman, hedge fund manager, alum, and donor.

Harvard’s headline endowment is $53 billion, but 75% of that is in private investments, like private equity and venture capital, that aren’t regularly marked to market value and are not liquid. He estimated that market value is 30-40% lower than stated. Further, Harvard has $8 billion of debt. Apparently, the day-to-day operation of the overall enterprise is heavily dependent on government money and annual donations.

This reminds me that UChicago is in even worse shape.

How do these great schools with so many great minds mess this all up?

Bill Ackman has a little bit of an agenda, so I'd take his comments with multiple grains of salt.

+1 talk to me when Buffett weighs in

[Anonymous]

Don’t listen to Ackman. Listen to everyone else talking about this. It has nothing to do with Ackman and has everything to do with what’s happening behind the scenes.

[Anonymous]

I don’t see how need blind non-LACs don’t take into account how much a student can pay in tuition next year.

[Anonymous]

Anonymous wrote:OP assumes it is unwise depend on government grants for research. But the government has funded research at universities instead of having their own government research facilities since the last world war, as it is mutually beneficial arrangement for both the universities and for the government, as well as being good for the scientific advancement of the country outside of industry. It wasn't on anyone's radar that this arrangement would end, because only a total nut job would want to cripple the scientific progress of their own country.

Exactly, Trump is destroying our leading sectors for no reason whatsoever.

[Anonymous]

Harvard's endowment looks huge but it's only $2,133,974 per student. That's not much more than Amherst at $1,858,417 per student.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is Ackman you are talking about.

Shrug if you want, but there seems to be a lot of smoke and fire around this issue independent of Ackman.

none, actually zero.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is Ackman you are talking about.

Shrug if you want, but there seems to be a lot of smoke and fire around this issue independent of Ackman.

none, actually zero.

Are you in finance? Talk to other LPs.

[Anonymous]

Ackman is an attention-starved media whore. His opinion is worthless.

And universities issue lots of debt because it is cheap leverage - they can (at least for now) issue bonds tax-exempt at very low rates, and easily outperform that with their investments. So it is very normal for them to carry high debt loads. Some schools issued 100 year "century bonds" and the market was thrilled to buy it at very low rates.

[Anonymous]

Anonymous wrote:
Harvard’s headline endowment is $53 billion, but 75% of that is in private investments, like private equity and venture capital, that aren’t regularly marked to market value and are not liquid. He estimated that market value is 30-40% lower than stated.

Why does he claim it's not marked to market? They have audited books, and an auditor won't sign off on that, in the case of investments that are easy to value.