Being at the helm of the largest university endowment in the country ($34.9 billion) is certainly prestigious, but the kind of green that Mohamed El-Erian will likely be returning to when he makes his way back to Pacific Investment Management Co, will no doubt make ivy green pale into nothingness in comparison. Let’s face it — endowments just don’t pay like big hedge funds do. He made all of $2.6 million last year, hardly hedge fund rock star pay for his 23% gain. El-Erian, 49, is returning to his old firm in January with two pimped out PIMCO titles: co-chief executive officer and co-chief investment officer.
Harvard recruited El-Erian in October 2005
to fill the void left a month earlier by the departure of 15-year investment
chief Jack Meyer, who left along with almost three dozen Harvard officials to
start a Boston-based hedge fund. El-Erian rebuilt the staff and guided the
endowment to a 23 percent gain in the fiscal year ended June 30, adding $5.7
billion to the world’s biggest university endowment.
“Mohamed has done an impressive job guiding and reorganizing Harvard Management
Co., and we will miss his leadership,” said James F. Rothenberg, treasurer of
Harvard University and chairman of the fund’s board. “In addition to achieving
excellent investment returns, he has led ambitious efforts to rebuild HMC during
his time as CEO.”
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Tags: Endowments, Harvard, Hedge funds, Pimco
