Former HMC investors have cited a variety of reasons for leaving the firm: the chance to earn more money, the chance to start their own company and the added privacy of the private sector. HMC’s salaries are, for example, public record.
Several sources close to HMC said they were confident the firm could weather the latest defection without losing the great returns the endowment has seen in recent years—especially since Highfields and Charlesbank have done so well investing for the endowment.
Meyer noted that similar questions have been raised each time a group has spun off.
“I’m optimistic that we’ll get through this one too,” he said. “We have some tricks up our sleeve.”
—Staff writer Garrett M. Graff can be reached at ggraff@fas.harvard.edu.