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Komfie Manalo, Opalesque Asia: The $38bn Harvard endowment was actually making more money when it was using outside managers compared to when it hired their own team to manage their money, claimed Scott Paige, portfolio manager, Apollo Aviation Group during the latest Opalesque 2017 Miami Roundtable.
Paige told panelists of the Roundtable, "If we take a look at the Harvard endowment, they initially had tremendous outperformance. At some point Harvard decided to spin out five managers and they continued to work with those outside managers, and they continued that performance. Later Harvard made the decision to bring back in-house the expertise, but that didn’t work out well. They hired their own team and they tried to replicate the outside performance and then were not able to. So now they are dismantling that structure and going back to outside managers."
Paige made Harvard as a case in point because the endowment was the gold-plate standard for an endowment and returns when making the conscious decision to go outside.
"They believe that it will be worth their expense, once again, despite having to explain to other parts of the university why they’re paying these fees for performance," Paige added.
The endowment is managed 200+ investment experts with high salaries who can’t beat the market, according to Charles Skorina, a Sa...................... To view our full article Click here
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