Did Harvard Just Lose $250 Million?
Posted on July 31st, 2007 in Uncategorized | 11 Comments »
Bad news for Harvard: It invested $500 million in Sowood, a hedge fund that just announced it has lost more than half of its assets.
From CBS Marketwatch:
Harvard Management Chief Executive Mohamed El-Erian suggested in December that the endowment was keen on investing more in Sowood.
“Harvard’s endowment has benefited from its long-term association with Sowood Capital Management through its investments in the Alpha product and commodity funds,” he said in a statement. “We look forward to deepening this relationship.“
Are you worried yet, Harvard?
11 Responses
7/31/2007 10:33 pm
worried about what? what’s 250 million?
7/31/2007 10:45 pm
the entire endowment for the design school- that’s what.
7/31/2007 11:33 pm
Well, actually, every one of the thousands of endowed funds at Harvard just dropped a little less than 1% each (if the $250M figure is correct). Not great, but life will go on, and that will be made up in a month or so. All of your TIAA-CREF pension fund equities dropped a lot more last Thursday and Friday.
7/31/2007 11:44 pm
Ok, let’s close the schools that have endowments that are not in Harvard’s league.
In fact let’s just focus on FAS and maybe one or two schools endowed sufficiently well to be able to focus on its academic mission (Business, Medicine and Law).
Everything else, let’s farm out to Yale or some other lesser college or ask the schools to become stand alone institutions, such as the Stanford Research Institute, so as to protect the Harvard brand name.
7/31/2007 11:47 pm
Why not merge all other Harvard Professional Schools? there would be substantial administrative savings and perhaps less distracting politics.
Harvard would have only 8 core units:
1. The College
2. FAS
3. HBS
4. HLS
5. HMS
6. Harvard Professional Schools
7. Central Administration and Services and
8. HMC
The organizational model in place is unmanageable and, under every tub… utterly unproductive.
8/1/2024 1:28 pm
Worried? You bet! After all, it’s money we’re talking about here-something that truly matters to the Corporation. 11:44PM is on the right track. If the Corporation wants Harvard to act (and be run) like a business, the stand-alone model for less well-endowed schools may well appeal to Corporation members.
8/1/2024 10:00 pm
Oh, stop it. Please show me the last time you blogged about some fund going up by the same amount, which surely has happened. Of course Harvard should distance itself from this guy in the future, but when you invest, you win some, and you lose some. The objective is not to lose none, but to have the net of gains over losses over the long run be as high as possible.
Unless you know something sleazy about this particular investment you aren’t telling us ….
8/2/2024 12:39 pm
Where is Sam Spektor when we need him?
8/2/2024 4:14 pm
Did someone call?
8/2/2024 9:32 pm
r u sam?
8/3/2024 2:44 am
green eggs and ham, Sam I am