Harvard's Endowment Stocks Up on Emerging Market ETFs

Harvard University's battered endowment has headed straight to emerging market ETFs looking to recoup losses and get back on a winning path according to tickerspy.

Looking at Harvard's top U.S.-listed holdings at the end of the first quarter which were recently disclosed to the SEC, the largest U.S.-listed equity holding by a wide margin was ETF iShares MSCI Emerging Markets Index (NYSE: EEM), where it was cutting its stake during the quarter.

Meanwhile, Harvard was upping its exposure to individual emerging markets via increased stakes in iShares FTSE/Xinhua China 25 Index (NYSE: FXI), iShares MSCI Brazil Index (NYSE: EWZ), iPath MSCI India Index ETN (NYSE: INP), iShares MSCI Mexico Investable Market Index (NYSE: EWW), iShares MSCI South Africa Index (NYSE: EZA), and others.

Harvard also reopened its stakes in mobile telecom firm China Mobile (NYSE: CHL), iShares MSCI South Korea Index Fund (NYSE: EWY), media giant News Corp (Nasdaq: NWS), and Israeli pharmaceutical company Teva Pharmaceutical Industries (Nasdaq: TEVA).

Comments

[woollyB:]

this is a recipe for disaster

May 17 09:55 AM

[Analyste de...:]

Wrong, wrong, wrong, wrong!!! and wrong. I don't know why analysts REFUSE to understand that "all publicly traded US-listed equities" is LESS THAN 3% of Harvard's TOTAL PORTFOLIO (last I checked.)

Think about that. Think about it some more. Take your time, check it twice. Consider how significant 3% of YOUR portfolio is. Better yet, if you have residual assets and decide to buy 15 stocks, why must those choices reflect your overall allocation (97% of the portfolio) or sector outlook ? In fact, we're talking about PART of 3%: is there any coherent or rational inference to be made about the Harvard Portfolio here? You're looking at <2% of the picture, the "back-fill" or "rounding" with ETFs, and trying to draw some meaningful conclusion??? Don't bother.

I've read probably ten other SA article that likewise 'miss the forest for the trees.' Why is this faulty logic so endemic here? Mark my words, there will be one or two more article off on the same tangent, within 48 hours...

May 17 01:26 PM

[AlexS:]

Well if it was cutting its stake in the overall emerging markets and increasing its stake in a bunch of individual emerging markets it's difficult to see where this is an indication of anything other than perhaps boredom.

May 17 10:40 PM