00:00It's not like UNC, where we know they bought it more than 15 years ago, put a couple of million
00:06dollars in, and, you know, they've got 30% returns this year.
00:11They also sold some before the IPO. They got their risk off the table. So that's an example of...
00:18Wow.
00:19Yeah, wow.
00:19What's Harvard going to do with a $2.2 billion windfall? Support the English faculty?
00:25Well, they've been cutting jobs in the Faculty of Arts and Sciences, so maybe not. But, yeah, I mean, remember,
00:32this is what the 13F shows on June 30th, a $2.2 billion stake, direct holding, and University of California,
00:42as I pointed out, also has a $1 billion stake, but the size of what University of California has AUM
00:50is $200 billion.
00:51It's the endowment, it's the pension funds, it's working capital, it's, you know, a whole big pile of money, and
00:58Harvard's is less.
00:59The most recent value we know from last year was $57 billion. It's likely more. So it's more concentrated.
01:07Do we know how these educational institutions, these endowments, how do they get access to these deals? Are they...
01:13Good question.
01:14Yeah, do we know anything?
01:15Well, we know about, you know, UNC, Duke, they were early investors. Something tells me it was something called Founders
01:23Fund, maybe you've heard of that.
01:24Yeah.
01:25And, you know, a lot of these early, early stakes, it's not just one investment, it's multiple managers, multiple vintages,
01:34and, you know, the positions have grown.
01:38So, and kind of a related question, higher education's been under pressure from this administration.
01:44Frozen funding, withdrawn funding, threatens to withdraw funding.
01:48Is that, in fact, occurred? Is that occurring now? Is that taking place?
01:53Are these universities seeing money either not come in from the government or go away?
01:57Well, here's the big question, is, yes, there are still some disputes over past funding.
02:04What is going to happen in the future?
02:07Is Harvard going to get the same kind of, you know, hundreds of millions of dollars that it's used to?
02:13Or is the government going to say, look, we don't need to give, you know, all this money to Harvard?
02:18You know, MIT was the king of Department of Defense funding.
02:22They are not, they are very concerned about that.
02:25Janet Lauren with decades of coverage of higher education.
02:28Let me go through the beauty list.
02:30Anna Maria College, Hampshire College, Laboree College of Healthcare, Lourdes University, Providence Christian College, and more and more and more.
02:39All these colleges are going out of business.
02:41Does this trend continue?
02:43Well, can you operate a business for 500 students?
02:47I'm asking.
02:48I mean, I mean, there's fewer kids, right, going to college?
02:52And that's because of demographic shifts, you know.
02:54Okay, so do you predict that we're going to see more colleges go under?
02:58Schools cannot afford to run businesses for a couple of hundred students.
03:03So, yes.
03:04It's just unit count.
03:06Yeah.
03:06I mean, it's just the demographics.
03:07I mean, there are fewer kids of college age.
03:10And then those that are of college age, fewer of them are enrolling in college.
03:14The risk-reward, a lot of folks are saying it's just not there.
03:16So, Harvard's cutting jobs, you know, in 14 other schools.
03:21I don't mean to pick on Harvard, but, like, arts and science faculty still.
03:25Staff, not faculty, staff jobs.
03:29Yeah.
03:30Yeah, I've heard that from a lot of schools because, again, they just don't know the federal funding for their
03:36research.
03:37Or how many kids want to take Latin?
03:40It's a good point.
03:41Latin, I think, is always going to have a market.
03:43You know, you want to go to medical school, maybe you want to know Latin.
03:47But, yeah, I mean, you have to have a realistic picture of who is taking your classes, where is the
03:54demand.
03:54Do you remember the story we talked about last week on grade inflation and the gem?
03:59If you remember that fun little fact, you know, non-tenured professors would advertise easy courses so students would pack
04:08them in and they'd get great reviews.
04:10We don't care.
04:1111 games out, wild card.
04:14Can the Mets do it?
04:16I just got an email.
04:18Do I want to up for any kind of package for next year?
04:22I don't know.
04:22Ask Marty Shaker what he thinks, too.
04:25Well, yeah, but, you know, I mean, this is exciting.
04:28After the trade deadline, the Mets are just killing it.
04:30Yeah.
04:31Not last night.
04:33Well, not last night.
04:34I hate the Padres.
04:35Do you want to know my San Diego Padres story?
04:37Sure.
04:38Please.
04:381984, the Cubs, do you remember?
04:41They were in the playoffs.
04:42Yeah.
04:43You could write away for World Series tickets.
04:45I won the lottery.
04:47I had World Series tickets.
04:49Do you remember what happened in that series?
04:51Steve Garvey killed it for me.
04:53I could still...
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