Spamdex - Spam Archive

Report spam

Send in your spam and get the offenders listed

Create a rule in outlook or simply forward the spam you receive to questions@spamdex.co.uk

Also in info2.eaglefinancialpublications.com

The Global Guru: How the Nevada State Pension Fund is Embarrassing Harvard

If you are on a mobile device or cannot view the images in this message view this email in your web browser.
To ensure future delivery please add financial@info2.eaglefinancialpublications.com to your address book or contacts.

Facebook Facebook

10/25/2016
The Global Guru: How the Nevada State Pension Fund is Embarrassing Harvard

This Stock Could be Like Buying Amazon in 1997

Shares of this company have only been available to the public for a few months, and one renowned investor believes NOW is the time to make a move.

Click here to find out more.

Click Here Now!

This past weekend, I attended a gala reception for more than 500 European Harvard University alumni who gathered in the impressively refurbished main hall of the Deutsches Historisches Museum (German Historical Museum) in Berlin.

Harvard’s President Drew Faust regaled alumni with self-congratulatory statistics on how the university is spending the fruits of its current $6.5 billion fundraising campaign by refurbishing undergraduate housing and getting Harvard’s science and engineering departments up to snuff.

Yet, there was other news from Cambridge, Massachusetts, that President Faust ignored in her polished plea to well-heeled alums in Berlin.

And that was the embarrassing performance of the Harvard endowment over the past decade.

For all of Harvard’s fundraising prowess -- second only to Stanford University -- six years of Harvard’s current capital campaign has been barely enough to offset the decline in the value of the Harvard endowment since 2011. Almost a decade after reaching its peak in 2007, the Harvard endowment today is roughly the same size that it was nine years ago.

Boasting a value of $35.7 billion today, Harvard's endowment tumbled about 5%, or $1.9 billion, over the past 12 months.

Sure, a big chunk of the most recent drop stemmed from the Harvard endowment forking over $1.7 billion to the university itself -- a roughly 30% subsidy to its annual operating budget.

However, of greater concern to Harvard alumni is that the university endowment’s investment returns over the past 12 months ended June 30 were a negative 2%.

That (yet again) trailed traditional rival Yale University, which eked out a 3.4% gain.

First Flight to Cuba Takes Off… and So Does a 20-Year Boom
Earlier this year, I predicted that the opening of diplomatic relations between the U.S. and Cuba would eventually create massive profit opportunities in a variety of sectors. However, things are unfolding much quicker than I imagined, as the first commercial flight to Cuba took off earlier this month!

This is the first of 5 Cuban “foundation plays” I’ve identified that could score you multiples of your money. And you can play them from the same U.S. exchanges you’re already using, like NASDAQ and NYSE. But you must hurry… click here now to discover my other top Cuban investments before the rest of the herd catches on.

Click Here Now!

Harvard’s Endowment: A State of Crisis

So why has the Harvard endowment performed so poorly?

Some of 2016’s poor performance may be due to bad luck. After a volatile start to the 2016 fiscal year, Harvard’s portfolio of publicly traded stocks lost 10.2% through June 2016. Throw in a couple of unfortunate blow-ups in Latin America, and voila! The Harvard endowment recorded its first annual loss since 2008.

Still, concern about Harvard’s poor investment performance is about more than just a single unlucky year.

Over the past decade, the Harvard endowment has generated an average gain of just 5.7%. Harvard’s five-year track record of 5.9% puts it at the back of the class among its Ivy League rivals, just ahead of Cornell University.

Not that Harvard has ignored its investment travails.

The Harvard endowment has plowed through several CEOs in recent years. The recently hired former head of Columbia University’s endowment will be the eighth CEO to lead the Harvard endowment in the past 12 years. His predecessor left after just 18 months on the job.

And it's not as if the largest university endowment in the world has lacked for investment talent. The Harvard Management Company’s staff is chock full of former Goldman Sachs partners and other highly compensated Wall Street professionals.

Nor have the former "Masters of the Universe" been shy about writing themselves big checks for huge salaries and bonuses. Ex-CEO Jane Mendillo earned $13.8 million in 2014. Other top traders at Harvard have made as much as $30 million in a single year.

How Nevada is Embarrassing Harvard

Carson City, Nevada, is a long way from Cambridge, Massachusetts.

That's where Steve Edmundson manages the Nevada State Pension fund -- which, at $35 billion, is roughly the same size as the Harvard endowment.

But that’s just about where the similarities between Nevada and Harvard end.

First, Steven Edmundson is the only investment professional managing the Nevada State Pension Fund.

The University of Nevada, Reno alumnus works with no other internal investment staff.

Edmundson’s investment philosophy?

Do as little as possible -- usually nothing. And invest exclusively in low-cost, passive investment vehicles.

Second, Edmundson earns an annual salary of $127,121.75. That’s a long way from the multi-million-dollar pay packages collected by top portfolio managers at Harvard. Ironically, his salary also matches just about exactly the $126,379 salary of an Assistant Professor at Harvard -- typically a 27-year-old academic who has just completed her Ph.D.

Third, and perhaps most astonishingly, the Nevada State Pension Fund’s investment track record soundly beats the Harvard endowment over the past decade.

While Harvard returned 5.7% annually over the last 10 years, the Nevada State Pension fund has generated annual returns of 6.2% over the same period.

Over the most recent five years, Nevada has extended its lead over Harvard, returning 7.7% per annum, while Harvard has stagnated at 5.9%. That annual outperformance of 1.8% per year feels like the difference between a journeyman .270 hitter in baseball versus a .320 batting All-Star.

As it turns out, Nevada is also beating the returns of the nation’s largest public pension fund, the California Public Employees’ Retirement System, also known as Calpers. Nevada’s investment returns have beaten Calpers over one-year, three-year, five-year and 10-year periods.

Sure, Calpers is a different beast, managing upwards $300 billion in assets.

But it also has a staff of 2,636 employees to generate its returns.

In contrast, Edmundson is essentially a one-man band.

Don’t Leave Money on the Table: Avoid Widespread Social Security Mistakes
One of your most valuable retirement assets -- and one that is neglected and misunderstood by most -- delivers guaranteed, inflation-adjusted lifetime income. Many people take steps that unwittingly reduce their benefits. I’ve been poking around the Social Security rules for years and have uncovered strategies that let people dramatically increase the lifetime income available to them and their loved ones.

In Secrets to Boosting Social Security Benefits, I explain when it makes sense to delay benefits. You’ll also learn:
  • The file and postpone strategy, and how it enhances benefits for a couple…
  • The 62/70 split, and why most couples should consider it…
  • And how you might receive benefits now, and higher benefits later, and much more.
You don’t go to the IRS for tax reduction strategies, so you shouldn’t rely on Social Security to tell you how to maximize your retirement benefits. Learn more…

Click Here Now!

What is to Be Done?

So does Nevada’s outperformance of the Harvard endowment mean Harvard should abandon the famous “Yale model” of endowment investing with its eye-popping allocations to alternative asset classes such as private equity, venture capital and hedge funds?

Put another way, should Harvard mimic the Nevada State Pension fund’s success, fire the bulk of its investment staff and only invest in low-cost index funds?

Although this radical strategy would likely improve Harvard's investment performance over the short term, the answer remains “probably not.”

Over the past 10 years, Yale has generated an annualized return of 8.1% on its endowment with a staff of about 25 investment professionals. So the Yale endowment outperformed Nevada by 1.9% over the past decade. And it achieved this by staying true to Yale endowment head David Swensen’s original “Yale model.”

So, the “Yale model” itself is not broken.

Instead, it is Harvard's investment team that has tripped over itself for the better part of the past decade.

Yale’s endowment has grown by close to 13% since 2007. Stanford’s endowment has soared by 31% during the same time. Meanwhile, Harvard has been running hard just to stay in place, barely eking out a 2.3% gain.

It is time for Harvard’s “Masters of the Universe” to get their act together.

P.S. If you want to profit from the stock recommendations gleaned from the top-performing investment strategies, subscribe to my trading service, the Alpha Algorithm. Click here to learn how Alpha Algorithm can help you.

In case you missed it, I encourage you to read my e-letter column from last week about investing with the "wisdom of crowds.".

***Publisher’s Note***

I am happy to announce that Mike Turner has joined the Eagle Financial Publications family. Mike and I sat down for a short discussion about investing that you can listen to by clicking here now.

In this interview, you will get to know Mike better and learn a few other things, such as:
  • Why most people buy and sell stocks at the wrong time
  • Mike’s 10 Rules for Investing that everyone should know
  • Why Bloomberg put Mike’s investing “Tools” product on more than 330,000 of its computer terminals
  • And lots more!
Listen to Mike's insights on the markets by clicking here now.
Sincerely,
Nicholas Vardy
Nicholas A. Vardy
Editor, The Global Guru

Subscribe to my Newsletter and Trading Services.
Follow me on Twitter.
Check out my Blog.
To ensure future delivery of Eagle Financial Publication's emails please add the domain @info2.eaglefinancialpublications.com to your address book or contact list.

This email was sent to because you are subscribed to the Nicholas Vardy's The Global Guru List. To unsubscribe or update your delivery preferences, please click here.


If you have questions, please send them to Customer Service.

Eagle Financial Publications - Eagle Products, LLC. - a Caron Broadcasting Company
300 New Jersey Ave. NW, Suite 500 | Washington, D.C. 20001

© 2016 Eagle Financial Publications. All rights reserved.



---------------------------

All titles, content, publisher names, trademarks, artwork, and associated imagery are trademarks and/or copyright material of their respective owners. All rights reserved. The Spam Archive website contains material for general information purposes only. It has been written for the purpose of providing information and historical reference containing in the main instances of business or commercial spam.

Many of the messages in Spamdex's archive contain forged headers in one form or another. The fact that an email claims to have come from one email address or another does not mean it actually originated at that address! Please use spamdex responsibly.


Yes YOU! Get INVOLVED - Send in your spam and report offenders

Create a rule in outlook or simply forward the junk email you receive to questions@spamdex.co.uk | See contributors

Google + Spam 2010- 2017 Spamdex - The Spam Archive for the internet. unsolicited electric messages (spam) archived for posterity. Link to us and help promote Spamdex as a means of forcing Spammers to re-think the amount of spam they send us.

The Spam Archive - Chronicling spam emails into readable web records index for all time

Please contact us with any comments or questions at questions@spamdex.co.uk. Spam Archive is a non-profit library of thousands of spam email messages sent to a single email address. A number of far-sighted people have been saving all their spam and have put it online. This is a valuable resource for anyone writing Bayesian filters. The Spam Archive is building a digital library of Internet spam. Your use of the Archive is subject to the Archive's Terms of Use. All emails viewed are copyright of the respected companies or corporations. Thanks to Benedict Sykes for assisting with tech problems and Google Indexing, ta Ben.

Our inspiration is the "Internet Archive" USA. "Libraries exist to preserve society's cultural artefacts and to provide access to them. If libraries are to continue to foster education and scholarship in this era of digital technology, it's essential for them to extend those functions into the digital world." This is our library of unsolicited emails from around the world. See https://archive.org. Spamdex is in no way associated though. Supporters and members of http://spam.abuse.net Helping rid the internet of spam, one email at a time. Working with Inernet Aware to improve user knowlegde on keeping safe online. Many thanks to all our supporters including Vanilla Circus for providing SEO advice and other content syndication help | Link to us | Terms | Privacy | Cookies | Complaints | Copyright | Spam emails / ICO | Spam images | Sitemap | All hosting and cloud migration by Cloudworks.

Important: Users take note, this is Spamdex - The Spam Archive for the internet. Some of the pages indexed could contain offensive language or contain fraudulent offers. If an offer looks too good to be true it probably is! Please tread, carefully, all of the links should be fine. Clicking I agree means you agree to our terms and conditions. We cannot be held responsible etc etc.

The Spam Archive - Chronicling spam emails into readable web records

The Glass House | London | SW19 8AE |
Spamdex is a digital archive of unsolicited electronic mail 4.9 out of 5 based on reviews
Spamdex - The Spam Archive Located in London, SW19 8AE. Phone: 08000 0514541.