Harvard Management Company (HMC) has made significant changes to its investment portfolio, with a reduction in healthcare holdings and an increased focus on technology. During the last quarter of 2023, HMC increased its direct holdings of Alphabet and Meta, with the two tech giants now making up 70% of HMC's public portfolio. The total value of the public portfolio has risen by 12.54%, surpassing $1.18 billion in assets under management. In contrast, HMC sold its stake in eight out of nine biopharma companies, reducing healthcare holdings to less than 1% [be65fd8b].
The shift towards technology investments is evident in HMC's portfolio, with tech holdings now accounting for a record-setting 98% of the portfolio. HMC saw a 34% increase in Meta holdings and a 56% increase in Alphabet holdings. Notably, HMC has maintained its direct holdings in semiconductor companies. However, despite the focus on tech, HMC's public portfolio performance continues to trail behind the S&P 500 [be65fd8b].
These changes in HMC's investment strategy reflect the evolving landscape of the tech sector and the growing importance of technology in investment portfolios. The decision to reduce healthcare holdings and increase exposure to tech giants like Alphabet and Meta demonstrates HMC's confidence in the long-term potential of the technology industry. It also highlights the impact of market trends and the need for institutions like HMC to adapt their investment strategies accordingly [be65fd8b].