Hedge funds were among the key contributors to Harvard University's 27.1% endowment return in the year to 30 June 2026, alongside gains in public equities and venture capital, according to a report by the Financial Times.

The performance, one of the strongest in the university's history, lifted the endowment's total assets to $68bn, representing an increase of almost 20% over the year.

NP Narvekar, chief executive of Harvard Management Company (HMC), which oversees the endowment, attributed the strong performance primarily to hedge funds, public equities and venture capital investments.

The results mark a recovery for one of the world's largest university endowments following several years in which substantial allocations to private markets had weighed on returns relative to publicly traded equities.

Harvard has maintained significant exposure to alternative investments, with private equity accounting for 46% of its portfolio, up from 34% five years ago.

Within that allocation, venture capital and growth equity represented 31% of the portfolio, compared with 24% a year earlier, reflecting the endowment's increasing exposure to privately held technology businesses.

Investments linked to the artificial intelligence boom and SpaceX were particularly significant contributors to performance. HMC held approximately $2.2bn in SpaceX shares as of 30 June, according to regulatory filings and people familiar with the matter.

The gains highlight the contribution of alternative strategies to institutional portfolio returns, although the relative performance of Harvard's individual hedge fund investments was not disclosed.