The Story Behind the Harvard Management Company in 1974 With One of the Founders, George Siguler!

The Story Behind the Harvard Management Company in 1974 With One of the Founders, George Siguler!

Mr. Siguler was a Founder of the Harvard Management Company in the early 1970s, and initiated and managed its venture capital, buyout and hedge fund activity. In other words he’s instrumental in creating the endowment model of investing as we know it today.

The Harvard Endowment dates back to 1638. Today the endowment
is a staggering $55 billion. That’s larger than the GDP of more than 120 nations — and all the money is tax free.

From the 1640s to the mid-20th century, the endowment was managed conservatively and over much of the prior hundred years until the formation of the Harvard Management Company only invested in public stocks and fixed-income investments.

Some of the Questions I ask George (who would go on to become one of the most successful investors ever… that’ll be for my part II interview with George!) include:

- Why not the status quo, what led to the then unheard of focus on venture capital, buyout, risk-arb and hedge funds?
- Share with us the impetus to change led by then Harvard President Cabot and Harvard Treasurer Putnam?
- You proposed a new model of investing focused on alts what was your thesis?
- What was the process back then for sourcing alternative managers (pre-consultancies)?
- How has endowment investing changed over the past 50 years?
- How did you navigate the balance between preserving the endowment's principal and generating income for current needs?
- What strategies can institutions employ to grow their endowments over time?
- Are there any emerging trends or best practices in endowment management that institutions should be aware of?
- How do economic fluctuations and market volatility impact endowment performance, and how can institutions mitigate risks in a rising interest rate environment?
- In your opinion, what are the most significant challenges facing endowment asset management today, and how can they be addressed?