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AssetBuilder Inc. - Registered Investment Advisor » Scott Burns Conversations » Couch Potato Investing » Harvard's Endowment

Harvard's Endowment

Last post 09-05-2008 11:11 AM by adunlap. 1 replies.
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  • 09-04-2008 5:50 PM

    Harvard's Endowment

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    Hi! Scott,

     I was wondering what your thoughts about on Harvard's "33% allocation to real assets, which include commodities and real estate"

    -Is the energy component strong enough to cover the commodity asset-allocation or are they covered elsewhere?

    --Thoughts on  Harvard's diversification scheme?

     http://www.marketwatch.com/news/story/lessons-harvards-endowment/story.aspx?guid={39AAA46F-779D-4E97-8A1A-45858FB50C69}&dist=TNMostMailed

    My Best!

    Mark

     

     

  • 09-05-2008 11:11 AM In reply to

    Re: Harvard's Endowment

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    Mark, Not speaking to the issue of allocation, I read the reference posting.  They were specifically discussing their fiscal year ended June 30, 2008.  Their seemingly spectacular returns may have more to do with the timing of their report and their reporting period. Since the June 30 reporting date, their largest weighting (commodities at 33%) are down 21.12%, crude oil is down is down 24.57%, US Stocks (the S&P500) is down 3.97%, International Developed countries’ equities (EAFE) are down 12.02% and emerging markets (MSCI) are down 17.17%.  Depending on your index, real estate is positive 5.00% to breakeven.  Many of the equity indexes are currently negative for the trailing one year and longer. The private equity piece is the unknown but typically daily pricing for those investments are non existent. 

    Bottom line, their 2008 return of 7% to 9% has probably vanished along with a few more percentage points.

     

    Give us you take Scott!  A. Dunlap  

     
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