September 29, 2024
Bloomberg recently published an article featuring Mark Williams, Master Lecturer of Finance, discussing the noted decline in Harvard’s endowment performance, which now ranks seventh among Ivy League schools.
Ron Daniel, former managing partner at McKinsey & Co. and former Harvard treasurer, was instrumental in growing the endowment. He was instrumental in transforming Harvard Management Co. into a major investment fund, emphasizing long-term private equity and hedge fund strategies for the university’s endowment. However, critics including former President Lawrence Summers, argue that Harvard would have significantly more assets today if its endowment had kept pace with the performance of its peer institutions.
“You just feel they’re playing catch-up ball,” Williams adds, discussing Harvard’s significant investment in private equity before experiencing a performance decline.
Harvard’s current investment strategy has included major shifts and a renewed focus on private equity, though results have been mixed.
