Harvard CIO Narv Narvekar on Endowment Changes

“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.

Harvard Magazine article on 2018 University Financials

Harvard Gazette article on 2018 University Financials

Sunset over Harvard campus.
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Post by Marcelino Pantoja