Harvard Endowment Needs to Lower Fees, Not Pay: Kaissar

The video discusses the challenges faced by endowments like Harvard's, which struggle to meet their target returns due to high fees and underperforming investments. It explores strategies to reduce costs, such as negotiating lower fees with hedge funds and private equity. The video also examines the inertia in endowment management and the potential shift towards lower-cost models like Vanguard's. Finally, it addresses skepticism about non-transparent active ETFs, questioning their value in improving returns.

What annual return do endowments like Harvard's need to maintain their real value?

• 5%

• 8%

• 7%

• 6%

What is a common fee model mentioned for alternative investments?

• 1 and 10

• 2 and 20

• 4 and 40

• 3 and 30

What is one strategy suggested for endowments to reduce investment costs?

• Invest more in technology stocks

• Negotiate lower fees with hedge funds

• Hire more financial advisors

• Increase investment in real estate

What is one advantage of low-cost investment alternatives?

• Lower returns

• Reduced fees

• Higher risk

• Increased complexity

Why might endowments be hesitant to adopt the Vanguard model?

• Fear of losing exclusivity

• Lack of historical data

• High initial investment

• Regulatory restrictions

What historical period is referred to as the 'Golden Age' for endowment returns?

• 1990s and 2000s

• 2010s

• 1980s

• 2020s

What is a key reason for skepticism towards non-transparent active ETFs?

• High fees

• Limited availability

• Poor historical performance

• Lack of transparency