On Tuesday, billionaire investor Bill Ackman expressed concerns about Harvard University, labeling the nation’s oldest and wealthiest institution as unworthy of taxpayer support due to what he described as “administrative bloat.”
Ackman, a Harvard alumnus who graduated over three decades ago, made these remarks shortly after the Trump administration announced that future grants to Harvard had been frozen.
He also challenged the university’s investment strategy, suggesting that it is facing a financial crisis and that its $53 billion assets amount to “underinvestment.”
“They’ve lost all future grants; their tax exemptions are in jeopardy,” Ackman stated during a panel at the Milken Institute Global Conference, which gathered around 5,000 financial experts, educators, and scientists to discuss pressing issues.
“This is all a result of gross mismanagement, and I think the (Trump) administration’s actions are justified,” he added to a full audience.
The Education Department informed Harvard on Monday that billions in future research grants and other financial aid would be on hold until the university meets various demands from the Trump administration.
In response, Harvard asserted that these demands were excessively burdensome, representing an “unprecedented and inappropriate control” that could threaten essential funding for life-saving research.
Ackman remarked, “The idea that federal money should only support groundbreaking research is fundamentally flawed.”
Representatives from the university did not immediately provide comments, while the Harvard Management Company, responsible for investments, declined to make a statement.
Ackman has consistently clashed with Harvard, particularly criticizing the institution for not adequately addressing anti-Semitism and previously attempting to influence the governing committee’s composition unsuccessfully.
He heads Pershing Square Capital Management, a hedge fund based in New York, and has openly supported Trump’s policies on tariffs and fiscal matters. Situated by the Charles River, Harvard boasts impressive real estate in Cambridge, Massachusetts.
However, Ackman noted that the university’s esteemed faculty, researchers, and students could easily transition to other institutions. “This could be the ideal moment in history to establish a new university,” he suggested.
He further criticized the university’s governing committee, claiming it had become insular and lacked accountability mechanisms that allow for the removal of members, in contrast to corporate governance.
“I sit on a board where I can appoint myself. It’s isolated, and with $53 billion at their disposal, they believe they can operate however they like,” he said.
