Key Takeaways
- • Walter M. Cabot, widely viewed as the architect of the Harvard endowment, died on June 2 at age 93, according to the Harvard Gazette.
- • Cabot served as president, CEO, director, and deputy treasurer of Harvard Management Company (HMC) over nearly two decades, and when he took over HMC in 1974 he moved the endowment into equities, venture capital, foreign markets, and real estate.
- • Under his leadership the endowment grew from nearly $1 billion to $5.5 billion by 1991; last year's report valued it at $56.9 billion, the largest in higher education.
- • Colleagues including Michael Eisenson, Robert Matson, and Hunter Lewis describe Cabot as a leader of exceptional judgment, integrity, and modesty who built a collaborative culture at HMC.
Summary
Walter M. Cabot, who died on June 2 at the age of 93, is widely regarded as the architect of the Harvard endowment, the world's largest, according to the Harvard Gazette. Over nearly two decades he served as president, chief executive officer, director, and deputy treasurer of Harvard Management Company (HMC), the entity that manages the university's endowment.
When Cabot took over HMC in 1974, he broke from the traditional 60/40 stock-and-bond mix then common among university endowments. He expanded the portfolio into equities, venture capital, foreign markets, real estate, and other asset classes. That made Harvard the first major endowment to diversify beyond stocks and bonds and laid the foundation for the modern endowment model. Hunter Lewis, co-founder of Cambridge Associates, who worked with Cabot from the early 1970s, said that "without Walter, there wouldn't be a Harvard Management Company."
Under Cabot's leadership the endowment grew from nearly $1 billion to $5.5 billion in 1991. According to the most recent report cited in the article, the endowment was valued at $56.9 billion. Cabot told the Harvard Crimson in 2005 that HMC was "the best job you could possibly have."
Colleagues describe a management culture as much as an investment record. Michael Eisenson, managing director and co-chairman of Charlesbank Capital Partners, said Cabot created a "collaborative and supportive" culture. Robert Matson, a Harvard Management partner from 1986 to 1992, described a "collegial, like a family atmosphere" unlike the rivalry common at other investment firms.
Cabot also served as treasurer of Wellesley College from 1978 to 2000, a period in which that institution's endowment rose from nearly $100 million to $1.2 billion. He is survived by his wife of 70 years, Dorothy S. Cabot, four children, 10 grandchildren, and six great-grandchildren. Memorial services will be held on Sept. 19.
When Cabot took over HMC in 1974, he broke from the traditional 60/40 stock-and-bond mix then common among university endowments. He expanded the portfolio into equities, venture capital, foreign markets, real estate, and other asset classes. That made Harvard the first major endowment to diversify beyond stocks and bonds and laid the foundation for the modern endowment model. Hunter Lewis, co-founder of Cambridge Associates, who worked with Cabot from the early 1970s, said that "without Walter, there wouldn't be a Harvard Management Company."
Under Cabot's leadership the endowment grew from nearly $1 billion to $5.5 billion in 1991. According to the most recent report cited in the article, the endowment was valued at $56.9 billion. Cabot told the Harvard Crimson in 2005 that HMC was "the best job you could possibly have."
Colleagues describe a management culture as much as an investment record. Michael Eisenson, managing director and co-chairman of Charlesbank Capital Partners, said Cabot created a "collaborative and supportive" culture. Robert Matson, a Harvard Management partner from 1986 to 1992, described a "collegial, like a family atmosphere" unlike the rivalry common at other investment firms.
Cabot also served as treasurer of Wellesley College from 1978 to 2000, a period in which that institution's endowment rose from nearly $100 million to $1.2 billion. He is survived by his wife of 70 years, Dorothy S. Cabot, four children, 10 grandchildren, and six great-grandchildren. Memorial services will be held on Sept. 19.
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