El-Erian Resigns As Harvard’s Endowment Head
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Mohamed El-Erian unexpectedly resigned as head of Harvard University’s $34.9 billion endowment fund to return to Pacific Investment Management Co., manager of the world’s largest bond fund, as co-chief executive officer. The 49-year-old executive, who led Harvard Management Co. to its best results in seven years after taking over in February, 2006, said in a statement that he was returning to Newport Beach, Calif.-based Pimco to be closer to family members.
Harvard recruited Mr. El-Erian in October 2005 to fill the void left a month earlier by the departure of 15-year investment chief Jack Meyer, who left along with almost three dozen Harvard officials to start a Boston-based hedge fund. Mr. El-Erian rebuilt the staff and guided the endowment to a 23% gain in the fiscal year ended June 30, adding $5.7 billion to the world’s biggest university endowment.
“Mohamed has done an impressive job guiding and reorganizing Harvard Management Co., and we will miss his leadership,” the treasurer of Harvard University and chairman of the fund’s board, James Rothenberg, said. “In addition to achieving excellent investment returns, he has led ambitious efforts to rebuild HMC during his time as CEO.”
At Pimco, Mr. El-Erian will be co-chief executive officer and co-chief investment officer, starting in January, the Newport Beach, Calif.-based fund said in a statement. Mr. El-Erian will share the CEO position with Bill Thompson and the top investment job with company founder Bill Gross.