Endowment Investing Model “Broken”: Report
Swensen's model taken to task.
BY Caroline Cakebread | May 26, 2010
Article from Pension and Investments: Harvard University and five of its New England peers succumbed to Wall Street’s influence on investment strategies, took on too much risk and made the financial crisis worse, according to a report.
Investment losses at the endowments led to cutbacks and delayed construction projects, draining at least $1.35 billion from local economies for the next three years, said the study by Tellus Institute and the Center for Social Philanthropy. The report also surveyed Dartmouth College, Massachusetts Institute of Technology, Boston College, Boston University and Brandeis University, and was partly funded by the Service Employees International Union, which represents employees at Harvard and other schools.