Harvard Does a Trade You Should Never Make

The university saved $50 million by hiring less-expensive money managers but lost billions in investment returns.

Not quite rock solid.

Photographer: Victor J. Blue/Bloomberg

The Harvard Management Co., which oversees Harvard University’s endowment and other investments, just released its 2016 annual report. It's grim reading: The fund had a negative return of 2 percent and was worth about $2 billion less than a year earlier, underperforming its benchmarks by a significant margin. 

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