Jan 25, 2017

Harvard's endowment is dumping half its investors

Harvard University is cutting around half of the 230 investment professionals that manage its massive $35.7 billion endowment, according to a memo sent out earlier today by recently-hired endowment CEO N.P. Narvekar.

In short, Narvekar blames the endowment's flagging investment performance on its traditional "hybrid" strategy, through which it utilizes both in-house and outside managers. Going forward, most of the emphasis will be on outsiders, although some of those could include current in-house teams that spin out into independent firms (including both its hedge fund and direct real estate teams). He also announced several new senior hires, including chief investment officer iock Slocum to oversee the new "generalist" structure.

Here's the memo, which was obtained earlier today by Axios:

Go deeper

Coronavirus kills 2 Diamond Princess passengers and South Korea sees first death

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. U.S. numbers include Americans extracted from Princess Cruise ship.

Two elderly Diamond Princess passengers have been killed by the novel coronavirus — the first deaths confirmed among the more than 600 infected aboard the cruise ship. South Korea also announced its first death Thursday.

The big picture: COVID-19 has now killed more than 2,200 people and infected over 75,465 others, mostly in mainland China, where the National Health Commission announced 118 new deaths since Thursday.

Go deeperArrowUpdated 7 mins ago - Health

SoftBank to cut its stake to get T-Mobile's Sprint deal done

Illustration: Rebecca Zisser/Axios

T-Mobile and Sprint announced a revised merger agreement that will see SoftBank getting a smaller share of the combined company, while most shareholders will receive the previously agreed upon exchange rate. The companies said they hope to get the deal as early as April 1.

Why it matters: The amended deal reflects the decline in Sprint's business, while leaving most shareholders' stake intact and removing another hurdle to the deal's closure.