Just one year after it declined by 27 percent, Harvard University’s endowment spiked by 11 percent, as of June 30, 2010. The endowment is now valued at $27.4 billion, according to The New York Times.
Penn’s endowment is valued at approximately $6 billion, though June 30 figures have not yet been released.
This improvement in Harvard’s endowment — the largest endowment in higher education — can be attributed to the growth of United States and foreign stocks, as well as private equity, according to the Boston Globe.
What the Times refers to as a “spectacular return” is in part the accomplishment of Jane Mendillo, who just finished her first year as president and chief executive officer of the Harvard Management Company.
The endowment is “well aligned with the long-term need of the university and with regard to the world more broadly,” Mendillo told the Times.
In light of the economic recession, HMC strove to reshape an endowment that could survive even during constant shifts in the market, according to The Harvard Crimson.
In previous years, the endowment relied heavily on alternative assets, which crumbled in conjunction with the crash of the housing market.
To minimize the impact of other market-related consequences, the HMC will continue to focus on strengthening its risk management division, the Crimson reported.
Though Harvard’s financial portfolio is in better shape than it was last year, Mendillo warned that the university must continue making prudent financial decisions. She admitted to the Times, “There are areas where we need to be more muted in our expectations.”
