Good Point

Et Tu, Harvard?

Share Post PrintAugust 15, 2010 Posted by John at 7:22 PM

Power Line

On Friday, Harvard University reported in an SEC filing that it has sold all of the shares it owned in Israeli companies. The total wasn't large, by Harvard's standards, around $39 million, and the university didn't offer an explanation. But it seems unlikely that Harvard's portfolio managers would simultaneously decide that it was time to sell all shares in five different companies, with nothing in common other than the fact that they are located in Israel. So, unless some other explanation is forthcoming, it seems that Harvard may quietly have divested its Israeli holdings on political grounds.

If this is right, it assorts oddly with Harvard's acceptance of large amounts of money from Saudi Arabian sources. Also, what are Harvard's largest securities holdings? Two ETFs, each worth $295 million, one in Chinese equities and the other in emerging markets. So Israel doesn't meet Harvard's moral test, but China does; and it would be interesting to see what countries are included among those emerging markets.

There is a pretty clear pattern here--again, assuming that the five nearly-simultaneous sales of shares in Israeli companies were not coincidental. Harvard is happy to do business with oppressors--real oppressors, that is--as long as there is enough money in it. China and Saudi Arabia have, in sheer monetary terms, a lot to offer. But taking a "principled" stand against Israel, still the Middle East's only democracy (unless you count Iraq, on which the jury is still out) and the only country in the region with a Western human rights sensibility, is cost-free. Sort of like banning military recruiters.