Harvard's Money Moves: Big Gains and Political Fights

Harvard University's investment fund, known as the endowment, reached a staggering $56.9 billion in 2025. This impressive figure is attributed to strategic investments that yielded significant returns, despite challenging times with the government. The fund saw a remarkable growth of nearly $4 billion in just one year.

Impressive Returns and Donations

The managers of Harvard's endowment, Harvard Management Co, reported an 11.9% profit in the last fiscal year, surpassing their usual target of 8%. This is a notable improvement from the previous year's 9.6% profit. Additionally, Harvard received a record $600 million in donations from alumni and supporters, demonstrating strong backing amid political controversies.

Political Challenges

President Donald Trump has been vocal in criticizing Harvard, accusing the institution of supporting antisemitism. Many observers believe these accusations are part of a broader effort to target schools perceived as opposing conservative ideologies. The legal battle extends beyond these allegations, as the government also seeks to reduce research funding and limit the number of international students at Harvard.

Investment Strategy

A significant portion of Harvard's endowment comes from:

• Private equity investments (41%)
• Hedge funds (31%)
• Public equities (14%)

N. P. Narvekar, the head of Harvard Management Co, noted that while public equity performance was not as strong, the overall success was due to selecting the right investment managers.

Setting Trends in Education

Harvard's investment strategies are closely watched by other educational institutions. They were pioneers in utilizing hedge funds and private equity, setting a precedent for others to follow. Harvard's president, Alan Garber, emphasized the institution's adaptability in the face of ongoing challenges and threats, without directly mentioning President Trump.