Harvard and Yale universities posted heavy losses in their endowment funds in the fiscal year to 30 June. Harvard lost $11 billion, or 27.5 percent, and Yale lost 30 percent to $16b. The university endowment funds invested heavily in hedge funds and private equity, which have suffered during the financial crisis. Both universities have responded by cutting costs and curtailing planned investment. Harvard has laid off staff and is stopping an ambitious construction project. Yale has projected a $150 million operating budget deficit for the next three years. The universities’ investment managers were among the world’s top investment performers over the past 10 years. Harvard Crimson, Reuters
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News story, GenevaLunch, 11 September 2009.
Filed under: World news
Tags: budget cuts, Cambridge Massachussets, deficits, Education, endowments, GenevaLunch, Harvard, hedge funds, highere education, investment losses, New Haven Connecticut, private equity, Yale