Why Is Harvard Crying?

Harvard’s endowment is frozen in illiquid private equity, and it is wondering how it can possibly pay its bills. Maybe they should have thought of that before becoming a political cesspool. Is there a more anti-American institution? Education Secretary Linda McMahon blasted Harvard’s use of federal funds and tax free $53.2 billion endowment in a recent letter to the university. Read the letter below:

McMahon references hedge fund manager Bill Ackman’s criticism of Harvard’s endowment, run by former Obama political appointee, Penny Pritzker, sister of J.B. Pritzker, governor of the failed Escape State of Illinois. McMahon writes: Ackman has called for the resignation of Pritzker, concluding that the “[t]he mismanagement here is Penny Pritzker” and noting that any serious corporation would have removed her after a litany of recent failings and the fact that, incredibly, ‘Harvard is not in a good financial position.’ According to Ackman, one of the world’s foremost finance experts, Harvard’s so-called $53 billion endowment is ‘massively overstated as far as what it’s really worth,’ and Harvard has irresponsibly taken out $8 billion in debt.”

Action Line: Perhaps the answer to why supposedly very wealthy Harvard University is crying over a measly billion dollars from the federal government is answered by Ackman. Maybe the health of Harvard’s endowment isn’t so great after all. Your Survival Guy will be watching what Harvard does with its private equity investments for clues as to how things will play out. Click here to subscribe to my free monthly Survive & Thrive letter.