The Harvard Management Company: Size Really Does Matter
In asset management, as in other endeavors, size really does matter.
Bigger is better. But growth in AUM drives growth in headcount and complexity; and that can overwhelm existing structures and challenge management.
A few weeks ago in "Crunch Time for the Harvard Endowment" we referred to HMC's hunt for a new "CIO" although, technically, the top job at HMC is "CEO."
In this niche that's often a distinction without much difference, and we tend to use "CIO" generically; but for Harvard there's a real challenge behind that equivocation.
A CEO, in proper corporate-speak, manages people, structure, and processes. A CIO, of course, develops and executes investment strategy to maximize returns.
The HMC board hopes to find a candidate who is both an outstanding investment strategist and a proven, effective manager - a CIO and a CEO.
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