Reply to Harvard finances in bad shape

Forum Index » College and University Discussion

Reply to "Harvard finances in bad shape"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]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.[/quote]

This link shows Harvard with a 39% allocation in private equity, which a little more than half of what Ackman said it is.  Furthermore, endowments are usually just reported publicly once a year.  All of the institutions would have fluctuations from the last reported amount, not just those with private equity.  [/quote]

How much though to other alternative assets? Does the "private equity" include other types of non-liquid assets like: venture capital, infrastructure, real estate, private credit?[/quote]

Here was the asset allocation in the Harvard Management Company letter last fall:

Public equities - 14%
Hedge funds - 32% 
Private equity - 39%
Real estate - 5%
Bonds/TIPs - 5%
Other real assets (incl. natural resources) - 3%
Cash - 3%

Here’s what they had to say about it:

“HMC’s asset allocation has featured three interrelated portfolio moves over the last seven years. First, we reduced the exposure to real estate and natural resources from 25% of the endowment portfolio in FY18 to 6% today. This strategic reduction has had a positive and compounding impact on the University’s endowment returns. It has also created room for the second major portfolio shift, which is our significant increase in private equities. Public equity returns are often outpaced by private equity — both buyouts and venture capital. However, in FY24, for the second year in a row, private equity returns lagged those of
public equity markets. Readers will recall that in FY22, private managers did not reduce the value of their
investments in a manner consistent with declining public equity markets at the time. As presaged inthat year’s letter, those private asset managers did not subsequently increase the value of their investments in the context of rising public equity markets in fiscal years 2023 and 2024. Finally, we increased the size of the hedge fund portfolio as a means of limiting equity exposure (public and private, collectively) and, therefore, limiting portfolio risk.”

TLDR: Ackman is basically full of it. Or maybe half full of it.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics