Harvard Endowment Going Outsourced
Running a hedge fund is hard work, and it’s not easy to succeed. Most Ivy League schools with comparable endowments have already offloaded management of their money, but Harvard has taken a while to come around:
“We can no longer justify the organizational complexity and resources necessary to support the investing activities of these portfolios,” — N.P. “Narv” Narvekar
Endowments are a big part of the funding model for old universities. At Harvard their “$35.7 billion endowment currently provides more than a third of Harvard’s operating budget”.
The broader trend here is the centralization of fund money, which we’ve seen in other financial industries as well. It’s expensive and difficult to beat the market, so top firms are consolidating and gaining access to bigger, better investments in doing so.
