Jan 25, 2017

Harvard's endowment is dumping half its investors

Dan Primack, author of Pro Rata

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

Updated 3 mins ago - Politics & Policy

Biden: George Floyd's last words are "a wake-up call for our nation"

Former Vice President Joe Biden meets with clergy members and community activists during a visit to Bethel AME Church in Wilmington, Del. on June 1, 2020. Photo: JIM WATSON/AFP via Getty Images

Vice President Joe Biden is calling George Floyd’s dying words “a wake-up call for our nation,” and criticized President Trump’s decision to unleash tear gas on peaceful protesters outside the White House, in a civil rights speech from Philadelphia on Tuesday.

Why it matters: Biden in the address drew a sharp contrast between himself and Trump, whose first remarks addressing nationwide unrest Monday highlighted law and order, extreme demonstrations of militarized “strength” and other blustery threats.

Updated 11 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 11 a.m. ET: 6,302,318 — Total deaths: 376,322 — Total recoveries — 2,716,924Map.
  2. U.S.: Total confirmed cases as of 11 a.m. ET: 1,812,125 — Total deaths: 105,192 — Total recoveries: 458,231 — Total tested: 17,340,682Map.
  3. Public health: Protests against police brutality threaten coronavirus response.
  4. Business: Coronavirus could lower GDP by $15.7 trillion — More than 1 in 6 black workers lost jobs between February and April.
  5. Climate: The alarm over climate financial risk gets louder because of coronavirus.
  6. Media: Interest in the George Floyd protests has soared past the coronavirus.

The business of tear gas

Illustration: Eniola Odetunde/Axios

U.S. forces yesterday used tear gas on peaceful protesters outside the White House gates, prior to a declared curfew, clearing a path for President Trump to visit a riot-damaged church for a photo opportunity.

The state of play: Two of the largest U.S. producers of tear gas are owned by private equity firms, but those firms have no interest in discussing their ownership.