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megimoo
07-22-2009, 10:41 AM
Hard Times at Harvard (Lunatic Liberal World's financial collapsed)

Only a year ago, Harvard had a $36.9 billion endowment, the largest in academia. Now that endowment has imploded, and the university faces the worst financial crisis in its 373-year history.

Could the same lethal mix of uncurbed expansion, colossal debt, arrogance, and mismanagement that ravaged Wall Street bring down America’s most famous university? And how much of the turmoil is the fault of former Harvard president Larry Summers, now a top economic adviser to President Obama?

As students demonstrate, administrators impose Draconian cuts, and construction is halted on an over-ambitious $1.2 billion science complex, the author follows the finger-pointing.



http://www.vanityfair.com/politics/features/2009/08/harvard200908

Gingersnap
07-22-2009, 11:08 AM
Very interesting piece. Good catch, Moo!

megimoo
07-22-2009, 12:50 PM
Harvard fund picks new manager,Pimco director will replace Meyer at helm of $25.9b endowment

Harvard University has chosen Mohamed El-Erian, a leading investor in emerging market bonds and recent candidate to run the International Monetary Fund, to become the new manager of its $25.9 billion endowment, according to industry and university executives.

El-Erian, a managing director of Pacific Investment Management Co. in Newport Beach, Calif., will succeed Jack Meyer as president of Harvard Management Co., the entity responsible for the investment of the world's largest university endowment, the executives said.

Meyer, who announced his intention to leave Harvard Management early this year, officially stepped down Sept. 30 after 15 years of spectacular investment performance that added billions to the endowment. More recently, multimillion dollar salaries of the endowment's top money managers became a cause of growing friction at Harvard.

A formal announcement on Meyer's successor is expected soon, perhaps as early as today. El-Erian declined to comment through a spokesman. A Harvard spokesman declined to comment on a new endowment manager yesterday.

El-Erian, 47, is an investment manager with big but limited credentials. He is a leading emerging market bond fund manager, responsible for about $27 billion invested in debt securities for the firm commonly known as Pimco.

But he has never overseen stock portfolios and has only six years of direct investment management experience. El-Erian joined Pimco in 1999 from Salomon Smith Barney, where he had been the London-based head of emerging market economic research.

Previously, El-Erian had worked at the IMF for 15 years. He was a formal candidate to become managing director of the fund in 2004, when the job ultimately went to former Spanish finance minister Rodrigo Rato.

El-Erian holds doctorate and master's degrees in economics from Oxford University and completed his undergraduate degree at Cambridge University, according to a biography on Pimco's website.

El-Erian manages several mutual funds and other investment accounts at Pimco. One of his principal mutual funds, a version of the Pimco Emerging Markets Bond Fund available to institutional investors, has earned about 19.3 percent annually over the past five years, ranking him among the top 11 percent of mutual fund managers in charge of comparable portfolios, according to Lipper Inc.

But he will have very large shoes to fill at Harvard Management, which has turned in among the best endowment investment performances under Meyer. Over the past decade, Harvard Management has earned an average of 16.1 percent, compared with a median return of 9.4 percent for institutional investors and 12.5 percent for the 25 largest endowments.

The university's endowment amounted to just $4.7 billion when Meyer joined Harvard Management in 1990. It grew fivefold over the next 15 years thanks in part to rising markets but also to the superior performance by a team of managers Meyer hired.
http://www.boston.com/business/articles/2005/10/14/harvard_fund_picks_new_manager/

megimoo
07-22-2009, 08:25 PM
Harvard Management Company (HMC)

is a wholly-owned subsidiary of Harvard University, charged with managing the university's endowment, pension assets, working capital, and non-cash gifts. HMC is perhaps best known for managing the university's $34.9 billion endowment, the largest endowment in higher education.
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Harvard is cheap .It doesn't want to pay top investment prefessionals the salarys they could
earn in the public sector so they leave after their contracts expire .The reason that most join Harvards investment group is for the credentials of managing such a large fund .
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Harvard lost approximately thirty percent of its net worth from thirty six billion to about twenty four billion in 2008 .
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The company employs financial professionals to manage the approximately 11,000 funds that constitute the endowment. The company directly manages about 60% of the total endowment portfolio, while working closely with the external companies that manage the rest.
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The HMC is headed by a professional, who is appointed the title of president and chief executive officer of the company. Its well-known recent president 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%.
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The university hired Mohamed A. El-Erian to succeed Jack Meyer as HMC's next president and CEO. Mr. El-Erian came from the bond trading company Pacific Investment Management (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%.
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Jane Mendillo was named the new head of Harvard Management Co., effective July 1, 2008. Mendillo had been Wellesley College’s chief investment officer since 2002. Prior to that, Mendillo served as vice president for external management at Harvard Management Co. A 1984 graduate of Yale University who got her MBA at Yale School of Management, Mendillo first joined Harvard Management Co. as an equities analyst in 1987.
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Harvard's New Stock picker
Jane Mendillo returns to Harvard as the new boss of the $35 billion endowment.
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Actually, it's a familiar face to the Crimson crowd. After an extensive search, Harvard has hired Jane Mendillo to oversee its $35 billion endowment.
Mendillo spent 15 years at Harvard Management Company before leaving in 2002 to manage the endowment for Wellesley College. During her five years at the women's school, the fund grew from $1 billion to $1.7 billion, and had annualized returns of 13.5 percent, according to an announcement by Harvard.
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She returns to Harvard to run the country's largest university endowment, a position that was vacated by Mohamed El-Erian last year. El-Erian returned to the giant bond fund Pacific Investment Management Co.
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Harvard's Billion-Dollar Man Departs
Jack R. Meyer, who took over the school's $4.7 billion endowment in 1991 and turned it into a $22.6 billion behemoth.
http://www.forbes.com/2005/06/29/harvard-management-meyer-cx_zs_0629harvard1.html
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Harvard fund picks new manager
Pimco director will replace Meyer at helm of $25.9b endowment
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Harvard University has chosen Mohamed El-Erian, a leading investor in emerging market bonds and recent candidate to run the International Monetary Fund, to become the new manager of its $25.9 billion endowment, according to industry and university executives.

El-Erian, a managing director of Pacific Investment Management Co. in Newport Beach, Calif., will succeed Jack Meyer as president of Harvard Management Co., the entity responsible for the investment of the world's largest university endowment, the executives said.

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Harvard average annual return 15.9% last ten years
2004 Endowment: $22,143,649,000
1994 Endowment: $6,201,220,000
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Mohamed El-Erian, former president and chief executive of Harvard Management Co., which oversees the endowment, received $921,000 in the year ended June 30. Mr. El-Erian left in December 2007 to become co-chief executive officer of Pacific Investment Management Co., so his pay reflects a partial year. Jane L. Mendillo, formerly at Wellesley College, now oversees Harvard's endowment.

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