Harvard Endowment’s 2 Percent Loss Magnifies Decade of Struggle

  • Biggest higher-education fund trails peers and broader market
  • Its $35.7 billion fund nears end of search for another chief

Harvard University's Business School stands in Cambridge, Massachusetts.

Photographer: Brent Lewin/Bloomberg
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Harvard University’s endowment, searching for new leadership amid a year of turmoil, reported a 2 percent annual investment loss, magnifying a decade of lackluster returns compared with the school’s elite rivals.

The world’s biggest college fund shrunk by $1.9 billion, to $35.7 billion after also accounting for ever-expanding spending on buildings, scholarships and research. Harvard blamed the outsize loss, for the year ended June 30, primarily on poor investments in stocks as well as natural-resource holdings in South America.