Beam Suntory Inc. (BEAM). Hudson City Bancorp, Inc. (HCBK): Jane Mendillo Justifies Harvard’s Decision to Diversify Its Portfolio by Investing in Non U.S Equities

Harvard Management Company Chief Executive Officer, Jane Mendillo, shared her investment philosophy on CNBC, during an interactive program which was held on the sidelines of institutional investor meet earlier this week.

Mendillo’s was asked to provide her opinion on the fact that, Harvard Management Company’s allocation in its portfolio to U.S domestic stocks and equities being at a low of about 11% of its total investments, at such a time when the U.S browsers have been experiencing a long drawn out Bull Run.

Jane Mendillo

In response, Mendillo explained that the 11% allocation to U.S public equities, in the current circumstances mirrors its investment pattern in U.S stock for past several years. She then went on to discuss thread bare Harvard Management Company allocation strategy by indicating that they have a similar 11 percent allocation going into European public stock and another good chunk of allocation which goes into the emerging markets. Additionally, a substantive 15 to 20 percent of the investment house equity also gets invested in private equity according to Mendillo.

“We believe in public market equities. [...] We participate in markets in a very active way. [...] Diversified equity exposure is even more important. We do not believe in having all our eggs in one basket. We have no way of predicting which market is going to do better over a one year, two years or even three years, but over the long-term, all of these equity markets offer the kind of growth potential that we need for the portfolio,” Mendillo said.

A quick review of the portfolio managed by Harvard Management Company attests to the investment tips she shared with her viewers. Her top three portfolio holdings are Beam Suntory Inc. (NYSE: BEAM) of which it holds 1.45 million shares. In Hudson City Bancorp, Inc. (NASDAQ:HCBK) it holds 11.14 million shares and in Forest Laboratories, Inc. (NYSE:FRX) it held 585,604 shares, until the company was acquired by Actavis plc (NYSE:ACT). While Beam Suntory Inc. (NYSE: BEAM) is a premium spirits company, Hudson City Bancorp, Inc. (NASDAQ:HCBK) is a regional bank with market cap of $5.1 billion, where as Forest Laboratories, Inc. (NYSE:FRX) is a New York based pharma firm.

Mendillo then went on to em pathetically assert that “she has no regrets” what so ever in relation to the decisions she has taken in not exposing her investment portfolio to more U.S public stocks. She also confirmed that she would be leaving Harvard Management Company at the end of 2014.

Disclosure: none

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!