Harvard Management Company Sells Technology Stakes, Increases Facebook Investments in Third Quarter | New

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Harvard Management Company sold its stakes in several tech and pharmaceutical companies while increasing its investment in Facebook as its portfolio of government securities fell 2% to $ 1.71 billion in the third quarter of 2021.

HMC reported the figure in its latest filings with the Securities and Exchange Commission. The regulatory agency requires investment managers who oversee more than $ 100 million in assets to disclose government securities held quarterly.

The University’s stock portfolio, one of the only publicly available sources of information about HMC’s investments, accounts for 3% of Harvard’s endowment.

The University’s endowment reached $ 53.2 billion in the fiscal year ending June 2021, posting returns of 33.6% as its investments benefited from strong public and private capital markets. .

In the third quarter, which ran from June 1 to September 30, HMC sold its shares in technology companies Palo Alto Network and Intercontinental Exchange. During the same period, he also sold his stakes in DaVita Inc, a healthcare company owned by Berkshire Hathaway; Unity Software, a video game software development company; Pinduoduo Inc, one of China’s largest e-commerce platforms; NuCana, a biopharmaceutical company specializing in cancer treatments; and Cortexyme, a biopharmaceutical company specializing in the treatment of degenerative diseases.

HMC also sold some of its shares in Apple, reducing its stake in the tech company from $ 333 million to $ 267 million. Apple was nevertheless the largest single stake reported in the case.

HMC increased its stake in Facebook by 37%, to a current value of around $ 242 million. The dossier describes the investments made in the third quarter, which preceded the Facebook company announcement in October that it would change its name to Meta Platforms.

The University also expanded its portfolio by purchasing shares in biotechnology companies Pacific Biosciences of California and Sana Biotechnologies, and in fintech firm Affirm Holdings. The total value of these holdings is $ 5.9 million, $ 26.2 million and $ 89.8 million, respectively.

In its largest acquisition of the quarter, HMC bought 61,070 shares for a total of $ 163 million from Alphabet, Google’s parent company.

John M. Longo, professor at Rutgers Business School and director of investments at Beacon Trust, wrote in an email that changes in investments do not reflect major changes in the course of the endowment’s investment strategy .

As in previous quarters, the majority of companies in which HMC holds government securities are in the technology, biotechnology or pharmaceutical industries.

“The changes made by Harvard Management Company (HMC) appear to be incremental in nature rather than a significant change in asset allocation or exposure to the sector,” Longo wrote.

He added that the acquisition of Facebook and Alphabet shares was a testament to HMC’s confidence in the two tech companies.

“They also seem to have a lot of confidence in Facebook, now known as Meta Platforms, as they strengthened its position when it was already among their biggest holdings of equities,” Longo wrote. “The new position in Alphabet also indicates a high level of confidence as it is among their top 5 holdings of equities.”

Patrick S. McKiernan, spokesperson for HMC, declined to comment on the documents, citing the foundation’s policy not to comment on individual investments.

– Editor Virginia L. Ma can be contacted at [email protected]

– Editor Kevin A. Simauchi can be contacted at [email protected] Follow him on twitter @Simauchi.



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