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Alternative Market Briefing

Harvard University’s endowment gains 11.3% on equities and hedge fund portfolios

Monday, September 30, 2013

Precy Dumlao, Opalesque Asia:

The world’s wealthiest school Harvard University gained 11.3% on its endowments to $32.7bn and exceeded its benchmark by 233 basis points for the fiscal year ended June 30, 2013. The endowment earned $600m from its investments in U.S. and foreign public equities and hedge funds.

In its annual report, Jane Mendillo, chief executive officer of Harvard Management Co., said that this is the fourth consecutive year in which HMC exceeded its benchmark. Over the last three years the average annual return on the Harvard endowment has been 10.5%, compared with the average annual return on the Policy Portfolio of 9.1%.

HMC lost 27% at the height of the financial crisis in 2009. Mendillo said Harvard is still trying to recoup those losses. At its peak in 2008, HMC’s assets reached $36.9bn.

Mendillo said, "I am very proud of the internal and external managers we have in place and the results they have achieved. We have made a strong recovery since the global economic downturn of 2008-2009."

Still, Harvard trailed its Ivy League rivals like Yale University which gained 12.5% through June and the University of Pennsylvania which reported 14.4% gains and the Massachusetts Institute of Technology which reported an 11.1% returns on its investments.

According to Mendillo, markets outside the U.S. resp......................

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