After years of student investment activism, Harvard has finally decided not to reinvest in HEI Hotels and Resorts, which has come under national fire for labor rights abuses. Read the Crimson story here:
Harvard Management Company, which oversees the University’s endowment, has chosen not to reinvest in funds managed by HEI Hotels & Resorts, according to an email sent by HMC President and CEO Jane L. Mendillo.
Harvard announced last December that it would would review HEI’s practicing after drawing criticism from labor activists for investing in the company, a hotel chain which has come under fire for repeated allegations of failure to comply with labor regulations.
Medillo’s email stated that decision not to reinvest was rooted in “factors related to the HMC portfolio and its strategy and needs” rather than issues related to HEI’s labor practices.
Princeton, Yale, Brown, the University of Pennsylvania, Cornell, Vanderbilt, and Swarthmore have all said within the last year that they will not reinvest in the company.
—Check thecrimson.com for updates.
And the email from HMC CEO Jane Mendillo to Harvard President Drew Faust:
Thank you for your inquiry about HMC’s future plans with regard to HEI. Harvard Management Company has decided not to reinvest in funds managed by HEI. Importantly, this decision was based on factors related to the HMC portfolio and its strategy and needs; not on concerns about HEI’s practices. Please let me know if you have any questions or concerns.