Harvard “EXPERTS” blow away 16 billion
Ever toyed with the idea of sending your spoiled offspring to a US-based elite academy, say Harvard University?
Forget it. Harvard, the oldest institution of higher learning in the US (world-renowned for its multi-billion foundation and its 43 Nobel laureates!), is setting its sights lower.
Most laureates are still aboard, but many billions vanished recently. Blown away! Well, the convenient student life in Cambridge will soon become more expensive and uncomfortable
In-house gamblers from Harvard Management Company (HMC) have incurred startling speculation losses. They blew away the tremendous sum of US$16 billion within three months. Man, 16 billion!! That is nearly the gross domestic product (GDP) of nations like Iceland and Panama, respectively.
The statements of those who are responsible for this disaster are, well, really funny. Take Jane L. Mendillo, HMC’s president and chief executive officer, as an example. On September 12th she told the Harvard Magazine that “results for HMC for fiscal year 2008 were very solid” (har har, that was only months before Ms. Mendillo had to confess that her glorious management company pulverized 40 percent of Harvard’s US$36 billion foundation treasure).
The mission statement of James Rothenberg, HMC’s Treasurer and Chair, is almost even funnier. On the HMC website Mr Rothenberg proclaims: “It is imperative that we invest our resources with skill and care.”
“Skill, care and solid results” as synonyms for a US$16 billion loss. Nice wording.
Will Harvard University axe the big-mouthed HMC gamblers and consult wiser people? They could do as they actually have a lot of expertise in-house. Take men like Thomas Schelling and Robert Merton. They are Harvard faculty members and they have been awarded Nobel Prizes in economics (as half a dozen of their Harvard colleagues have, too). Thus, why should Harvard furthermore pin its hopes on HMC?
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
Comments
No comments yet.
Leave a comment