Managers of Harvard’s endowment are looking for help in preparing for the market’s downside.<\/p>\n
Lucinda Shen writes:\u00a0America’s largest university endowment wants more money managers who will\u00a0bet on a stock falling.<\/p>\n
The chief executive of\u00a0Harvard Management Company, which manages the university’s $37.6 billion endowment, on\u00a0Tuesday\u00a0warned about “potentially frothy markets.”<\/p>\n
Stephen Blythe added that the endowment is\u00a0now looking for stock managers that will short stocks as well as go long.<\/p>\n
“We have renewed focus on identifying public equity managers with demonstrable investment expertise on both the long and short sides of the market,” he said.<\/p>\n
In an annual letter to investors, Blyth wrote that the market “presents various challenges to investors” and that\u00a0it is time to proceed “with caution in several areas of the portfolio.”<\/p>\n
The endowment returned 5.8% through June 30, though the performance of the absolute return portfolio was underwhelming. The\u00a0$6 billionportfolio returned\u00a00.1% in fiscal year 2015. That compares to a benchmark of 3.5%, according to the report.<\/p>\n
Blyth\u00a0said the endowment was seeking to decrease exposure\u00a0to\u00a0equities and inflation and increase\u00a0exposure to\u00a0the dollar, bonds, and the high yield market.<\/p>\n
Managers of Harvard’s endowment are looking for help in preparing for the market’s downside. Lucinda Shen writes:\u00a0America’s largest university endowment wants more money managers who will\u00a0bet on a stock falling. The chief executive of\u00a0Harvard Management Company, which manages the university’s … Continue reading ![\"How](\"http:\/\/www.w-t-w.org\/en\/wp-content\/uploads\/2015\/10\/How-to-Deal-with-Frothy-Markets-1024x609.jpg\")
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