1/7/2024 0 Comments Huit inmr harvardBut this lean organization clearly hasn’t impeded their performance. David Swensen, the “chief investment officer”, makes do with only about 30 people, and all are direct employees of the university. The Yale Investment Office, with 25.6 AUM (June 30, 2015) notably, does not have a management-company structure. UTIMCO, which manages money for the University of Texas and Texas A&M, is the second largest US endowment with almost the same AUM as Harvard, about $35.9 billion as of July 31, 2016, but CEO/CIO Bruce Zimmerman commands fewer than 70 people in total, only a third of HMC’s headcount. The number of possible relationships, including conflicts, rivalries and miscommunications, increases much faster than headcount. In that regard Harvard is a Gulliver among Lilliputians, and that fact complicate the search now in progress.Ĭlassical organizational theory argues that management gets harder as a geometric function of headcount, not just arithmetic increase. HMC has well over 200 employees, of whom about 60 are investment professionals, while none of the other major endowments have more than 70 total employees. A rose by any other name…īut Harvard is unique among endowments not only in AUM, $37.6 billion as of June 30, 2015, but also in headcount. Neal Triplett at DUMAC is “president and CIO.” And at UNCMC Jonathon King is President and CEO. At CIMC Narv Narvakar is CEO, while Peter Holland is, technically, their CIO. At MIT, Seth Alexander is styled “president.” At SMC Robert Wallace is just CEO (they used to have a CIO as well). In addition to HMC they include Columbia’s Columbia Investment Management Company, Stanford’s SMC, Virginia’s UVIMCO, Texas’ UTIMCO, MIT’s MITIMCo, Duke’s DUMAC, the University of North Carolina’s UNCMC, and a few others.Īt UTIMCO and UVIMCO, the boss has both the CEO and CIO titles. Some major endowments have separate investment management companies reporting to their own boards. The HMC board hopes to find a candidate who is both an outstanding investment strategist and a proven, effective manager – a CIO and a CEO. A CIO, of course, develops and executes investment strategy to maximize returns. In this niche that’s often a distinction without much difference, and we tend to use “CIO” generically but for Harvard there’s a real challenge behind that equivocation.Ī CEO, in proper corporate-speak, manages people, structure, and processes. But growth in AUM drives growth in headcount and complexity and that can overwhelm existing structures and challenge management.Ī few weeks ago in “Crunch Time for the Harvard Endowment” we referred to HMC’s hunt for a new “CIO” although, technically, the top job at HMC is “CEO.” In asset management, as in other endeavors, size really does matter.īigger is better.
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