Harvard's Endowment Loses $8 Billion

CAMBRIDGE, Mass. — Harvard officials say the university's largest-in-the-nation endowment lost about 22 percent of its value, or $8 billion, in the four months since the end of the last fiscal year.

The endowment was worth $36.9 billion as of June 30.

Harvard will have to take a "hard look at hiring, staffing levels, and compensation," university President Drew Faust and Executive Vice President Edward Forst wrote in a letter informing deans of the losses.

They say the university should plan for a 30 percent drop in endowment value by the end of next June.

Forst tells The Harvard Crimson student newspaper that the 22 percent estimate may be conservative because some university money is handled by external managers that have yet to report figures.

Comments

[Turtleposer]

11:07 PM on 12/03/2008

Aw shucks. Well, they can still go to the junior college I went to - let's see- Losers Last Chance College.

Actually, it was a pretty good school. Don't knock junior college if you haven't tried it. You're just paying for overworked grad students to teach you the first year at any other four-year institution. JCs don't have grad students - thus no grad student teachers.

No, I'm not sorry for the shameless shilling for junior colleges.

[Fabini]

01:39 PM on 12/04/2008

The Community College system in America is one of its under-sung and supported assets.

[AnotherMcIntosh]

11:04 PM on 12/03/2008

It's should now be obvious to everyone, Harvard MBAs are overpaid.

[hrhkat29]

10:59 PM on 12/03/2008

am I supposed to feel bad for them? I really dont...Harvard does not turn out students like they used to...MIT, Berkeley, Stanford, UCLA, Northwestern, CIT, they are creating the students of tomarow, Harvard is falling like the old ideas before the Enlightenment period.

[Fabini]

01:40 PM on 12/04/2008

Harvard is a dinosaur, but a very rich one.

[humboldtgold]

10:47 PM on 12/03/2008

Harvard lost their B U T T on speculative emerging economy investment, and have probably taken some great advice from their alumni and levered themselves 30 to 1 in a position or two somewhere along the line.

8 Billion--good lordy...

When the government bails me out for being a responsible citizen and student, I'll apply to Harvard.....
While your at it, bail me out of the higher student loan rates the Captain Bush approved and thought we should have to repay. What happend to 3%? That's what I get for my higher income tax rate???

HA!

[Indie2008]

10:44 PM on 12/03/2008

Private schools for the privileged few. Where would our government get its talent without them? Let their famous alumni bail them out. Otherwise, Goodbye.

[Fabini]

01:43 PM on 12/04/2008

The Ivy League schools have used their scholarship endowments to enroll great, but financially limited students for many years now. The Ivy League is one of the leaders in a diversified egalitarian society. This is one area where they should NOT be faulted.

[humboldtgold]

10:26 PM on 12/03/2008

Opaqueness pays off. How do you say, ahhhh yes, Risk Management 101...

They frothed at the mouth when things were booming, now they're down 8 BILLION....
Crazy leverage, and they've lost their B U T T on emerging economy speculation.

If the gov't bails me out for being a responsible citizen and student, then I'll apply to Harvard...

[wadenelson1]

10:25 PM on 12/03/2008

*Millions of community college graduates snickering in unison.*

[sonoffestus]

10:24 PM on 12/03/2008

Harvard needs to invest in their Busness School. They don't seem to be doing a good job a turning out competent business leaders.

[neuron]

09:49 PM on 12/03/2008

Man, I thought they were the smart ones...

[Fabini]

01:45 PM on 12/04/2008

No, just the rich ones.

[JennyJay]

09:46 PM on 12/03/2008

And thank you . . . George W. Bush! - How could so much damage be done in so short a time?
Easy, if you let a freaking clown run the country.

[themodernleader]

09:42 PM on 12/03/2008

Bobsmith. Aggressively buying into a declining economy is the stuff of fool's gold. Keep your powder dry until the DOW hits 6 or four thousand. Than step in with a toe or two.

[dukeitout]

09:39 PM on 12/03/2008

A 22% loss in todays business climate could be considered a win. Most of the really smart guys and many of the financial crooks lost much higher percentages.

[xtiangodloki]

10:50 PM on 12/03/2008

No kidding. In the last year S&P 500 went from 1500 to 900, while Dow Jones went from 14000 to 8800. Generally speaking, if you can beat the market at all you are already better than the average financial crook running large mutual funds. If you can beat the market by close to 50% you are doing fantastic. Granted, I am pretty sure these Harvard guys have more insider info than even the mutual fund managers at big firms but still, If I could I would allow these guys to manage my 401k any day.

[triplbee]

09:34 PM on 12/03/2008

Harvard's endowment was 10BB only 10 years ago. Their rate of return is incredible. They should stop whining.

[Fabini]

01:46 PM on 12/04/2008

But back then 10 billion could only buy you Rhode Island.

[bikerdude]

09:22 PM on 12/03/2008

That's payback for turning GWBush loose on the rest of us...

[bluguy8]

08:41 PM on 12/03/2008

so close the school . your not getting bailed out