BOSTON Harvard University plans to outsource most of its investment management activities and cut its staff by roughly half, in a dramatic overhaul in how the Ivy League school’s $35.7 billion endowment is managed.
The new chief executive of Harvard Management Co, which manages the university’s endowment, announced the plans in a letter on Wednesday. N.P. Narvekar, the chief executive, said the investment arm will shut down its internal hedge funds and let traders go by the middle of 2017, essentially abandoning a so-called hybrid model that was unique among big endowments.
The internal team that oversees real-estate investments will spin out into an independent group that is expected to keep managing money for Harvard.
HMC will lay off roughly half of its 230-person staff, by the end of the year.
“The investment landscape has evolved significantly, requiring us to adapt two aspects of HMC’s organizational and…