Harvard Sees Market Froth, Looks To NonCorrelated Strategies

Harvard University seeks strong noncorrelated investing talent as Stephen Blyth, the university endowment’s statistically minded chief executive, looks at the market environment and sees "froth." When making evaluations, perhaps the Harvard Management Company executive might want to consider statistically valid alternative investment criteria to diversify a portfolio to defend against a steep market decline.

Harvard Endowment: With Private Equity and IPO valuations high, market appears frothy

The problem, as Blyth sees it, is the market has become “frothy,” a sometimes imprecise description for a market environment that generally speaks to a high level of both market optimism and stock valuations. To make this determination the manager of the world’s largest university endowment at...