Harvard Management Co
Each fall, Harvard releases an annual financial report that provides insights into the University’s budget and investment strategy. For years, the endowment section of the report looked largely the same, with data on HMC’s targets, as well as returns across asset categories. But this fall, it abandoned the longtime practice of disclosing investment performance by asset class.
The value of Harvard University’s endowment fell by $2.3 billion in fiscal year 2022 after the Harvard Management Company delivered a 1.8 percent loss on its investments — its first year of negative returns since 2016.
Harvard Has Reported Positive Endowment Returns for Five Straight Years. That Could Change this Year.
With high inflation and rising interest rates rattling financial markets, the Harvard Management Company, the University’s investment arm, could be on the brink of delivering its first negative annual returns in five years.
Harvard has decried a bill passed under the Trump administration that includes a tax on wealthy university endowments. But is the impact of the provision as significant as the University claims it to be?
The Harvard Management Company shored up its investments in the technology industry last quarter, boosting its shares of Alphabet — the parent company of Google — by nearly 40 percent while increasing its holdings in the semiconductor companies.
The Harvard Management Company advocated for new environmental disclosure rules under consideration by the U.S. Securities and Exchange Commission, while pushing back against the proposal’s broadest reporting mandate in a letter to the SEC.
U.S. Representative Gregory F. Murphy (R-N.C.) called on Harvard to disclose and divest its endowment from any potential holdings in Chinese companies deemed a threat to national security by the federal government in a letter to the school last week.
The Harvard Management Company more than tripled its shares of Meta Platforms — formerly known as Facebook — as it saw nearly all of its stock holdings decline in value during the first three months of 2022.
Harvard University President Lawrence S. Bacow earned $1.13 million in 2020, a pay cut from his compensation during the first full year of his presidency in 2019.
After Initial Sell-Off, Harvard Endowment Has Slowly Increased Number of Public Holdings Under Narvekar
The number of stocks in the Harvard endowment has slowly crept back up in recent years after the Harvard Management Company sold off the vast majority of its public holdings when N.P. “Narv” Narvekar took over as its CEO.
As the Harvard Managment Company works toward achieving its pledge, climate and financial experts weighed in on the challenges the company faces, including difficulties obtaining data on and measuring the emissions of its partners.
HMC’s acquisitions and liquidations were reported in its latest filings with the Securities and Exchange Commission, which requires investment managers who oversee more than $100 million in assets to disclose their public securities portfolio each quarter.
At Harvard, 2021 was a year marked by change. The school’s long-awaited return to in-person operations injected new life into a campus that had been left dormant for over a year by Covid-19. And in an unexpected shift, the University announced its intention to divest its endowment from fossil fuels after a decade of public pressure. Separately, faculty controversies — including a federal conviction and a high-profile departure — ignited debates that rippled across academia. Below, The Crimson looks back at the 10 stories that shaped the last year at Harvard.
Harvard chief financial officer Thomas J. Hollister said the University’s finances are “moving in the right direction” in a Wednesday interview, though he cautioned that officials remain alert in the ever-changing landscape of the Covid-19 pandemic.