Harvard cuts stock investments
Harvard University, the world’s richest school with a roughly $29 billion endowment, cut its bets on U.S. stocks in the fourth quarter, according to a regulatory filing.
The filing shows that the university’s investment unit, Harvard Management Co., held roughly 70 stocks at the end of the fourth quarter, down from about 200 at the end of the third quarter. The holdings were valued at $571 million, down from roughly $2.9 billion at the end of the third quarter.
The Ivy League school made its move after its endowment lost 22% in the first four months of the fiscal year that began in July and as financial markets were tumbling no teletrack payday loan.
Harvard manages roughly half of its endowment in-house and hands the rest over to outside managers including hedge funds and private-equity funds.
Harvard’s investment performance is closely watched in the industry, as the school delivered an average annualized investment return of 13.8% over the last decade with big bets on alternative investments like hedge funds, timber and real estate.
Filed under: management by Forest