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Paul Cabot Returns to Harvard as Treasurer Paul Cabot Returns to Harvard as Treasurer
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Nathan M. Pusey Nathan M. Pusey
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Mac Bundy and Derek Bok Mac Bundy and Derek Bok
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Jack Kennedy and Ken Galbraith Jack Kennedy and Ken Galbraith
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Cite
Abstract
This chapter recounts the achievements of Paul Cabot as the treasurer of the Harvard University. In October 1948, Paul was appointed as Harvard’s part-time treasurer only, as he could not accept the position without the State Street Investment Corporation (SSIC) to back him up. His first action as Harvard treasurer was to raise the common stock allocation, by investing new money in equities and through the appreciation of stocks, after eight months of assuming his position. He did it prudently by not shifting more money into equities during the eight-month period. Consequently, by the time stocks fell from $16.19 to $13.55, he was able to prevent its injurious effects to Harvard’s and SSICs portfolios. Paul’s management of the endowment of Harvard University was unprecedented at the time.
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