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Vaniver comments on Taking Effective Altruism Seriously - Less Wrong Discussion
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But by this reasoning, they also do not care about a $5M cash gift to get someone off the waitlist. If I know that my company is going to put in an offer for another company at 20% above the current trading price, that info is worth $5M if you have and can move $25M without raising any concerns. If anything, the larger a fund, the easier is it to make adjustments like that to take advantage of insider info without it appearing suspicious. ("Yeah, we bought $25M of that stock the day before the buyout offer was announced, but it was as part of $700M of rebalancing, because we like to adjust 2% of our total portfolio every month.")
Correct. The endowment managers absolutely don't care about a $5m cash gift. It's the admissions office which cares because it's a part of that minor side line in higher education and doesn't have free access to all those billions.
Assuming an average return somewhere in the 8-10% area, the endowment generates each year $3-3.5 billion. Why risk an SEC investigation, a potential prosecution, a hit to reputation, etc. for a mere $5m which is about the rounding error in financial statements?
In general, I would recommend learning to distinguish between reality and caricatures drawn by enemies. It would seem to be... rational :-)
Because the SEC wouldn't dare go after Harvard. And even if some prosecutor at the SEC who didn't get the memo decided to start something, it would get covered up. The issue is that Harvard has more moral authority then the SEC.
And on which basis do make such a confident pronouncement?