“In a refinement, or perhaps a restatement, of his description of the duration of that transition, [CEO] Narvekar wrote that ‘the significant changes we are undertaking require a five-year timeframe to reposition the organization and portfolio’—a message he has underscored continuously. But he added a phrase about ‘subsequent strong performance,’ for those who may have missed the subtlety.
That is to say, remaking HMC [Harvard Management Company] and activating its new investment disciplines, refining its risk framework (at least a two-year collaboration with HMC’s board and the University, beginning soon); reestablishing relationships with superior external fund managers; and getting them money to invest, are all encompassed within that five-year transition—after which harvesting the presumably superior results should show up.
That is the nature of investing appropriately in long-term, illiquid assets, where those higher risks and returns reside over time.”
Five years is but a blip for a school that should last forever.
Post by Marcelino Pantoja