Economics

TIL University of Texas is on track to overtake Harvard as having the largest US college endowment. 🤘

Oil money is big. 

What’s really surprising is to see the low  relative performance of their fund managers despite shelling out $800M in fees.

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“Former Harvard President Lawrence Summers complained to the Harvard Crimson student newspaper that if the endowment had merely grown as much as its average peer over the past two decades, the university would have about $20 billion more. That sum is almost the size of the University of Pennsylvania’s entire endowment. (Summers, a Harvard professor and former US Treasury secretary, is a paid contributor to Bloomberg TV.)

Harvard didn’t scrimp on compensation for ­investment talent. Over the past two decades, HMC tax filings show the endowment paid its top investment managers and executives a total of about $800 million—enough to cover the school’s undergraduate financial aid budget for more than three years. (The endowment hasn’t disclosed pay for the most recent year.)”

👉 Harvard’s Not-So-Smart Money: Two Decades of Poor Returns and Rich Pay

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“Former Harvard President Lawrence Summers complained to the Harvard Crimson student newspaper that if the endowment had merely grown as much as its average peer over the past two decades, the university would have about $20 billion more. That sum is almost the size of the University of Pennsylvania’s entire endowment. (Summers, a Harvard professor and former US Treasury secretary, is a paid contributor to Bloomberg TV.)

Harvard didn’t scrimp on compensation for ­investment talent. Over the past two decades, HMC tax filings show the endowment paid its top investment managers and executives a total of about $800 million—enough to cover the school’s undergraduate financial aid budget for more than three years. (The endowment hasn’t disclosed pay for the most recent year.)”

👉 Harvard’s Not-So-Smart Money: Two Decades of Poor Returns and Rich Pay  https://www.bloomberg.com/news/features/2024-09-29/harvard-endowment-generates-poor-returns-rich-pay-over-20-years

Cool chart. Is there another one with the management fees?