Harvard University endowment

{{Like resume|date=February 2021}}

HMC employs financial professionals to manage the approximately 14,000 funds that constitute the endowment.[https://www.hmc.harvard.edu/hmc-harvard/ Endowment at Work.] Harvard Management Company. HMC is a 501(c)(3) non-profit entity{{Cite web|url=https://projects.propublica.org/nonprofits/organizations/237361259|title=HARVARD MANAGEMENT COMPANY INC|publisher=ProPublica|date=9 May 2013 |archive-url=|archive-date=|access-date=Jan 14, 2020}} exempt from federal income taxation{{Cite web|url=https://www.law.cornell.edu/uscode/text/26/501|title=26 U.S. Code § 501. Exemption from tax on corporations, certain trusts, etc.|website=www.law.cornell.edu|url-status=live|archive-url=https://web.archive.org/web/20191225220056/https://www.law.cornell.edu/uscode/text/26/501|archive-date=December 25, 2019|access-date=January 14, 2020}} and led by a management team of N.P. "Narv" Narvekar (chief executive officer), Rick Slocum (chief investment officer), and Sanjeev Daga (chief operating officer).[https://www.hmc.harvard.edu/about/#leadership HMC Leadership.] Harvard Management Company.

Jack Meyer managed HMC from 1990 to September 30, 2005, beginning with an endowment worth $4.8 billion and ending with a value of $25.9 billion (including new contributions). During the last decade of his tenure, the endowment earned an annualized return of 15.9%.{{cite web |date=January 12, 2005 |title=Harvard Loses an Investing Star |website=Bloomberg News |agency=Bloomberg News |url=https://www.bloomberg.com/news/articles/2005-01-11/harvard-loses-an-investing-star |accessdate=June 26, 2020}} In part after compensation disagreements, a number of HMC managers including Meyer himself left to form their own investment management firms. Bloomberg in 2011 reviewed a group of the resultant firms—Adage Capital Management LP, Charlesbank Capital Partners LLC, Convexity Capital Management LP (Meyer's), Highfields Capital Management LP and Regiment Capital Advisors LLC—which at that time between them managed $43 billion in assets.Wee, Gillian, [https://www.bloomberg.com/news/2011-03-02/harvard-s-crimson-cubs-with-43-billion-dwarf-their-former-endowment-home.html "Harvard's Crimson Cubs With $43 Billion Dwarf Their Former Endowment Home"], Bloomberg, March 2, 2011. Retrieved 2012-11-07.

The university hired Mohamed El-Erian to succeed Meyer as HMC's next president and CEO. He came from the bond trading company PIMCO and pledged to "rebuild and reinvent" the company. He announced his leaving September 12, 2007, to return to PIMCO after guiding the endowment to a one-year return of 23%.{{cite news |author=Geraldine Fabrikhant |title=Fund Chief at Harvard Will Depart |work=The New York Times |url=https://www.nytimes.com/2007/09/12/business/12endow.html |accessdate=September 12, 2007 |date=September 12, 2007}}

Jane Mendillo was named the new head of HMC, effective July 1, 2008. She had been Wellesley College’s chief investment officer since 2002. Prior to that, she served as vice president for external management at HMC. A 1984 graduate of Yale University followed by an MBA from Yale School of Management, Mendillo first joined HMC as an equities analyst in 1987. Her tenure was largely shaped by the Great Recession, with a cash squeeze in University operation and endowment performance, a shrinkage of endowment asset value, and errant interest rate, financial derivatives and leveraged positions, according to a Feb. 2009 news report. Staff of HMC was trimmed 25%, or by about 50 people, in line with shrinkage of about $8 billion (about 22%). A source for the report said that some of the positions in the endowment which had to be liquidated were in hedge funds run by Meyer's Convexity Capital and Seth Klarman's Baupost Group.Fabrikant, Geraldine, [https://www.nytimes.com/2009/02/21/business/economy/21harvard.html?pagewanted=1&em "Endowment Director Is on Harvard’s Hot Seat"], The New York Times, Feb. 20, 2009. Retrieved 2-22-09.

Stephen Blyth became the CEO of HMC on January 1, 2015. Blyth joined the firm in 2006, and previously held roles as Head of Internal Management and Head of Public Markets, responsible for investments in public equity, credit and fixed income markets. An alumnus of Cambridge University and Harvard University, Blyth has also served as a Professor of the Practice of Statistics at Harvard University.{{cite web |author=Stephen Blyth |year=2014 |title=Harvard names new head of its endowment investments |website=The Boston Globe |url=https://www.bostonglobe.com/business/2014/09/24/harvard-chooses-insider-stephen-blyth-investment-chief-for-endowment/eSh6EUD6WXgFWTQeCNWt7H/story.html |accessdate=September 24, 2014}}

Marc Seidner joined HMC as vice president for domestic fixed income in an effort to revamp the company's bond division in 2006. Mr. Seidner was previously the director of active core strategies at Standish Mellon Asset Management.{{cite web |url=https://www.thecrimson.com/article/2006/4/20/harvard-management-company-hires-two-senior/ |first1=Mossavar |last1=Rahmani |first2=Cyrus|last2=M |title=Harvard Management Company Hires Two Senior Executives in Plan to Remake HMC |work=The Harvard Crimson|date=April 20, 2006}} The Wall Street Journal reported on June 23, 2009, that Seidner was departing from the organization. On August 14, 2009 PIMCO announced that it had hired Seidner as an executive vice president and portfolio manager to manage a range of fixed-income portfolios.

On September 30, 2016, N.P. "Narv" Narvekar was appointed as CEO.[https://www.harvardmagazine.com/2016/09/harvard-management-new-endowment-leader harvard management new endowment leader] In January 2017, Narvekar announced the company would be laying off about half of the 230-employee staff by outsourcing some positions and closing all its internally managed hedge funds by the end of the 2017 fiscal year.{{cite news |last=Ryan |first=Greg |url=https://www.bizjournals.com/boston/news/2017/01/25/harvards-endowment-manager-cutting-half-its-staff.html |title=Harvard's endowment manager cutting half its staff |work=Boston Business Journal |date=2017-01-25 |accessdate=2017-01-26}} In 2019, Narvekar was paid $9.3 million compensation.{{cite news |last1=McDonald |first1=Michael |title=Harvard Endowment CEO Reaps $9.3 Million Payday in Overhaul |url=https://www.bloomberg.com/news/articles/2019-05-10/harvard-endowment-ceo-reaps-9-3-million-payday-amid-overhaul |accessdate=15 July 2020 |agency=Bloomberg |date=May 10, 2019}}{{cite news |last1=McDonald |first1=Michael |title=Harvard Endowment Chief Was Paid $8.6 Million in 2018 |url=https://www.bloomberg.com/news/articles/2020-07-10/harvard-endowment-chief-narvekar-was-paid-8-6-million-in-2018|accessdate=15 July 2020 |agency=Bloomberg |date=July 10, 2010}}

In 2002, Harvard Management Company was linked to George W. Bush's Harken Energy scandal.Blenkinsopp, Alexander J., [https://www.thecrimson.com/article/2002/7/19/harvard-stock-under-scrutiny-the-company/ "Harvard Stock Under Scrutiny"], The Harvard Crimson, July 19, 2002.Conason, Joe, [http://dir.salon.com/story/news/col/cona/2002/07/11/bush/index.html "Did those 'boutique' liberals bail out Bush?"] {{webarchive|url=https://web.archive.org/web/20080307130901/http://dir.salon.com/story/news/col/cona/2002/07/11/bush/index.html |date=2008-03-07}}, Salon.com, July 11, 2002. Specifically, Michael R. Eisenson, who would later found private equity firm Charlesbank Capital Partners was the Harvard representative on the Harken Energy board when Harvard made a $30 million investment into the ill-fated oil company venture.Fitts, Catherine Austin. [http://www.scoop.co.nz/stories/HL0207/S00146.htm "The Money Lords Of Harvard: How The Money Works At The World's Richest University"], scoop.co.nz. At the time, employees were accused of improperly investing their own money into Harken but Harvard deemed those investments appropriate.Steinhard, Jenifer L., [https://www.thecrimson.com/article/2002/11/21/harvard-investors-call-harken-deal-clean/ "Harvard Investors Call Harken Deal Clean"], The Harvard Crimson, November 21, 2002

From 2004 to 2015 Harvard University acquired 33,600 hectares (83,000 acres) of Romanian forest land. In 2015 they abruptly sold their entire holding to a subsidiary of Ikea. These holdings have since faced significant legal challenge as many were acquired corruptly during Romania's post-Communist restitution process.{{cite web |last1=Bojin |first1=Daniel |last2=Radu |first2=Paul |last3=Strandberg |first3=Hans |title=How Ikea And Harvard Got Tangled In A Corrupt Romanian Land Deal |url=https://www.huffpost.com/entry/harvard-ikea-corruption-romania_n_56d86cbbe4b0000de4039509 |website=HuffPost |date=3 March 2016 |access-date=6 December 2020}}

In September 2021, after years of pressure from student and outside groups, Harvard announced that it will stop investments in fossil fuels.{{Cite news|last=Treisman|first=Rachel |date=2021-09-10|title=Harvard University Will Stop Investing In Fossil Fuels After Years Of Public Pressure|language=en|publisher=NPR |url=https://www.npr.org/2021/09/10/1035901596/harvard-university-end-investment-fossil-fuel-industry-climate-change-activism|access-date=2021-10-12}} The university's public announcement cited "the need to decarbonize the economy and our responsibility as fiduciaries" in explaining its decision.{{Cite web|date=2021-09-09|title=Climate Change: Update on Harvard Action|url=https://www.harvard.edu/president/news/2021/climate-change-update-on-harvard-action/|access-date=2021-10-12|publisher=Harvard University President|language=en-US}} Climate activists on campus had waged a multi-year campaign for full divestment, including bringing lawsuits, storming the field of the 2019 Harvard-Yale football game, organizing on-campus protests, and other strategies.{{Cite news|last=Treisman|first=Rachel|date=2021-09-10|title=Harvard University Will Stop Investing In Fossil Fuels After Years Of Public Pressure|language=en|publisher=NPR|url=https://www.npr.org/2021/09/10/1035901596/harvard-university-end-investment-fossil-fuel-industry-climate-change-activism|access-date=2021-10-12}}

• List of colleges and universities in the United States by endowment
• List of wealthiest charitable foundations

{{Reflist}}

• [https://www.nytimes.com/2009/09/11/business/11harvard.html "Harvard and Yale Report Losses in Endowments"], The New York Times, September 11, 2009.
• Epstein, Edward Jay, [https://www.huffpost.com/entry/how-much-has-harvard-real_b_152711 "How Much Has Harvard Really Lost?"], Huffington Post, December 21, 2008.
• [https://www.wsj.com/articles/SB118771455093604172 "Harvard's Fund Returns 23%, Boosting Size to $34.9 Billion"], The Wall Street Journal.

:The Harvard Crimson

• Mossavar-Rahmani, Cyrus M., [https://www.thecrimson.com/article/2006/5/4/endowment-chief-speaks-to-students-the/ "Endowment Chief Speaks to Students"], May 4, 2006. Re: Mohamed A. El-Erian.
• Ciarelli, Nicholas M., [https://www.thecrimson.com/article/2006/1/3/hmc-salaries-fall-from-highs-the/ "HMC Salaries Fall From Highs"], January 3, 2006.
• Ciarelli, Nicholas M., and Alexander H. Greeley, [https://www.thecrimson.com/article/2005/10/14/top-bond-manager-to-lead-endowment/ "Top Bond Manager to Lead Endowment"], October 14, 2005. Re: Mohamed A. El-Erian.
• "Endowment Reaches $25.9 Billion", no working link or date.
• Zhu, Peter F., [https://www.thecrimson.com/article/2009/3/31/hmc-analyst-questions-dismissal-after-a/ "HMC Analyst Questions Dismissal"], March 31, 2009. Re: analyst Iris Mack's 2002 dismissal and settlement.

:The Harvard Crimson

• Greeley, Alexander H., [https://www.thecrimson.com/article/2006/2/7/ex-hmc-chief-opens-6b-fund-strongcorrection/ "Ex-HMC Chief Opens $6B Fund"], February 7, 2006. Re: Jack R. Meyer
• Mossavar-Rahmani, Cyrus M., [https://www.thecrimson.com/article/2006/2/9/yales-chief-investor-says-hmc-overpays/ "Yale's Chief Investor Says HMC Overpays"], February 9, 2006. Re: David Swensen.

{{Harvard}}

Category:Harvard University

Category:Financial services companies established in 1974

Category:Investment management companies of the United States

Category:Companies based in Boston

Category:American companies established in 1974

Category:1974 establishments in Massachusetts

Category:Privately held companies based in Massachusetts