Do you know how much Harvard Management Company managers make? Shouldn that money be used to reduce the cost of tuition for students?
It is estimated that, over the past 10 years, the full cost of internally managed assets at HMC has been less than half of what it would have been if equivalently good performance had been achieved through external hedge fund management. To attract competitive money managers, compensation levels must be on par with the industry standard. Because the endowment has performed so well, the resources have been available to reduce student indebtedness in recent years from $16,400 for the Class of 2000 to $6,400 for the Class of 2005.
