Harvard Ups Stake in Emerging-Market Funds in Q1

(May 15, 2011) — In the first quarter, Harvard University purchased shares of exchange-traded funds that track emerging-markets.

According to a filing with the Securities and Exchange Commission (SEC), obtained by Bloomberg News, the value of US-listed shares held by Harvard Management Co. rose 24% to $1.39 billion as of March 31, from $1.12 billion three months earlier.

The Boston-based company that oversees the school’s $27.6 billion endowment showed that its largest ETF purchases were shares tracking Brazil, India, and Russia. Meanwhile, John Longbrake, a spokesman for the university, told the news service that the filing “represents only a small fraction of the overall endowment.” Specific purchases included $35.3 million in shares of Ladish Co. — which was acquired by specialty metals company Allegheny Technologies Inc. last week — and $80.6 million of Alcon Inc., the world’s largest maker of eye-care products.

Last month, Harvard Management also showed it was upping its commitment to commodities, hiring Satu Parikh to head its investment management team as managing director and head of commodities.

Parikh’s move to Harvard Management signals efforts by institutional investors to increase their commodities exposure in an effort to achieve further diversification and hedge against inflation, as well as a reaffirmation of the internal investment structures of endowments, such as Harvard’s.