And the good news continues - Harvard Endowment Down

Parents Forum
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<p>Harvard's endowment takes 22 percent hit
Wednesday December 3, 10:04 am ET
Harvard's endowment takes 22 percent hit, and is expected to lose more</p>

<p>CAMBRIDGE, Mass. (AP) -- 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.</p>

<p>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.</p>

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

<p>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.</p>

<p>Harvard's</a> endowment takes 22 percent hit: Financial News - Yahoo! Finance</p>

<p>I bet this is just the first of many... Harvard will be the largest hit (since they are the largest fund) - but others will probably take a bigger percentage hit. I expect that student aid will be hard hit in 2009 awards :(</p>

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<p>"I expect that student aid will be hard hit in 2009 awards"</p>

<p>Nationwide, that's probably true. I don't think it will be true for the HYPSMs of the world.</p>

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<p>Here's the Crimson article:</p>

<p>The</a> Harvard Crimson :: News :: Harvard Endowment Fell 22 Percent in Four Months</p>

<p>And the most stunning quote:</p>

<p>
[quote]
Leveraging its strong credit ratings—the highest granted by rating agencies Moody’s and Standard & Poor’s—Harvard will issue new taxable fixed-rate debt. Unlike tax-free debt, these bonds can be used for any University expenditure and thus increase Harvard’s cash flexibility, Forst said.

[/quote]
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<p>Harvard clearly has cash flow issues, probably trying to raise cash for all the cash calls from the private equity and hedge fund commitments. I read recently that one Ivy League university (I can't remember which one) only had 23% of its assets in liquid investments.</p>