CAMBRIDGE, Mass. (AP) — The agency that oversees Harvard University's largest-in-the-nation $36 billion endowment is cutting half its staff as it tries to boost lagging investment returns.
Harvard Management Company, the university's investment unit, plans to eliminate its internal hedge fund teams by year's end, eliminating about 115 jobs. It will instead focus on hiring outside investment managers, a model that's common among other universities.
CEO N.P. Narvekar said in a memo that competition from outside managers has made it difficult to hire investment experts. He said the company can no longer justify its complex organizational structure.
Narvekar said Harvard's current model worked for decades but must adapt to industry changes.
Narvekar was hired from Columbia University last year after Harvard's endowment posted a 2 percent loss on investments, its worst performance since 2009.