Harvard University's endowment, historically the largest among universities, is facing potential challenges to its dominance from the University of Texas, which benefits from significant energy revenue.

Factors contributing to Harvard's decline include internal management issues, external controversies, and scrutiny over its investment strategies, particularly in alternative assets like hedge funds and private equity.

The Harvard Management Company has seen a succession of CEOs, raising questions about its leadership stability. Additionally, a notable decrease in donations has further strained the endowment's financial health.

In contrast, the University of Texas Investment Management Company (UTIMCO) is capitalizing on its oil wealth, positioning itself as a formidable competitor in the university endowment landscape.