When Genius Failed

Condon, Bernard; Vardi, Nathan
March 2009
Forbes Asia;3/16/2009, Vol. 5 Issue 4, p30
The article focuses on the crisis situation, faced by Harvard Management Co., the subsidiary that invests Harvard University's money. Harvard Management had derivatives that gave it exposure to $7.2 billion in commodities and foreign stocks. With prices of both crashing, the university was getting margin calls--demands from counterparties for more collateral. Desperate for cash, it went to outside money managers begging for a return of money it had expected to keep parked away for a long time.


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