Harvard Management Company


Focusing on Strong Risk-Adjusted Returns

HMC's generalist investment model breaks down silos among asset classes to search the world for the most attractive risk-adjusted returns. A central tenet of our investment culture is a belief that a disciplined set of processes, practiced by a capable and experienced team, will generate superior long-term results. The generalist investment team includes both Chief Executive Officer Narv Narvekar and Chief Investment Officer Rick Slocum as active participants.

We are keenly focused on building processes—and supporting analytics—and executing them consistently. We combine these processes with a partnership culture in which the collective team engages in focused debates about investment opportunities both within asset classes and across the investment universe. The result is an investment team with a singular focus: the performance of the overall endowment.

The generalist investment team devotes considerable time, thought, and effort to managing the risks inherent in our complex portfolio. Our risk allocation framework expresses the portfolio in betas and alphas, as opposed to asset class allocation, which allows us to estimate the total risk in the portfolio. This understanding of the portion of risk, rather than the portion of dollars, coming from any one category of investments strengthens our dialogue in determining the appropriate level of risk for Harvard.