Oh, and endowments aren't hurting at Harvard.
Remember that.
Related: Harvard Recruits College Students... in China
"The toll on Harvard: $8.1b; Endowment's returns over 4 months just a bit better than S&P 500's" by Beth Healy and Steven Syre, Globe Staff | December 4, 2008
Even the famous Harvard University endowment can't beat this historically ugly market.
Harvard had just one-third of its assets in stocks last summer, yet the fund still lost 22 percent of its value, or $8.1 billion, in four months from July through October, the school's president told deans in a letter Tuesday. It was by far the largest loss ever for the world's biggest endowment - a huge reversal of fortune at a school known for its investment superstars.
O.K., what is with the FUCKING LYING?!!
Aaaaaaaaaaaaahhhhhhhhhh!!!!!!!!!!
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Harvard's investment plan for the current year did not look anything like a typical individual's 401(k) account. Only 11 percent of the portfolio was dedicated to US stocks on June 30, the last time the fund issued a public report. The other 22 percent of the equity slice was split evenly between stocks of developed countries and riskier emerging markets.
Hedge funds made up the biggest category for the endowment this year, accounting for about 18 percent of all assets. Private equity, or funds that invest in private companies, made up 13 percent of the portfolio. Harvard also makes big investments in commodities, timber, agricultural land, and other real estate. Together, those types of investments were slated to get about 26 percent of the endowment money....
Harvard is reportedly considering selling as much as $1.5 billion in private equity holdings on the secondary market. That's a measure investors resort to only in the worst of times, because such investments sell at steep discounts. But the endowment may take this step, said two people briefed on the fund's standing, to avoid the cash calls the private equity firms may make in coming months....
Once again, it always comes down to BANKERS, doesn't it?
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