HARVARD HIT

Harvard faces a $1 billion budget shortfall/year should Trump follow through on his threats spanning research, taxes, and enrollment. At 5%, Harvard’s $53 billion endowment yields $2.5 billion/year. However, in FY24 Harvard drew $2.4 billion from it to fund one-third of the budget. Moreover, 80% of the endowment is restricted and 75% is in illiquid private equity, hedge funds and real estate. Harvard will talk big but buckle and negotiate.