Harvard University’s endowment fund is one of the largest and most influential university endowments globally, currently valued at over $50 billion. The fund is managed by Harvard Management Company (HMC), which oversees the investment of the university’s endowment assets. HMC has a long and storied history, being founded in 1974 to bring professional investment management to Harvard’s endowment. While the fund has seen its share of controversies and leadership changes over the decades, it remains a major force in the investment world today. Some key leaders behind HMC and Harvard’s investment activities include:
HMC CEO N.P. Narvekar spearheads the group overseeing Harvard’s vast endowment
As CEO of HMC since 2016, Narvekar heads the organization responsible for managing Harvard’s endowment fund and related financial assets. With over 30 years of investment experience at major firms like Columbia University and JPMorgan, he was brought in to reposition HMC’s investment strategy and boost returns after a period of underperformance. Under his leadership, HMC has restructured its investment team and approach, including expanding the range of asset classes and bringing more external managers on board. While recent performance has improved, HMC still faces challenges, including scrutiny over high compensation and pressures to address social issues in its investments.
Legendary investor Jack Meyer led HMC during years of standout returns
Jack Meyer served as HMC’s CEO for over 15 years between 1990 to 2005, a period where he grew Harvard’s endowment from $4 billion to over $25 billion. Meyer pioneered HMC’s move towards alternative asset classes like private equity, absolute return strategies and timberland. This proved hugely successful, with Harvard earning annualized returns of 15.9% under his tenure. However, his aggressive pay packages also caused controversy, with Meyer earning $6 million in his final year. He left HMC in 2005 to found his own hedge fund, Convexity Capital. But his market-beating returns have been hard to replicate, with HMC going through several leadership changes since.
David Swensen pioneered the Yale Model for endowment investing
While not directly part of Harvard, Yale’s chief investment officer David Swensen has had an immense influence on institutional investing. As manager of Yale’s endowment since 1985, Swensen developed the highly successful “Yale Model” portfolio strategy. It advocates for large allocations to alternative assets like private equity, hedge funds and real assets. This unconventional approach allowed Yale to generate world-beating 13.9% average annual returns over Swensen’s tenure. The model has been widely copied by other university endowments, including HMC. Swensen has also mentored many people who went on to lead top endowments, earning him the moniker the “Warren Buffett of institutional investing”.
Mohamed El-Erian provides macroeconomic insights on Harvard’s investments
Mohamed El-Erian served as CEO of HMC from 2005 to 2007 and now acts as a consultant. He is widely respected for his macroeconomic insights, having previously been a managing director at bond giant PIMCO. El-Erian sits on HMC’s investment committee and provides guidance on asset allocation and risk management. He advocates for flexibility and liquidity in Harvard’s investments to navigate an uncertain global economy. El-Erian also acts as economic advisor for Allianz, leads the consulting firm Gramercy and publishes widely read commentaries on markets and economies.
Harvard’s investment activities have been shaped by leaders like Narvekar, Meyer, Swensen and El-Erian. They pioneered influential investment approaches and navigated HMC through various market environments. While recent returns have stabilized, HMC still faces challenges around strategy, compensation and social demands.