Harvard’s Bet on Interest Rate Rise Cost $500 Million to Exit

Discussion in 'Wall St. News' started by seasideheights, Oct 17, 2009.

  1. Oct. 17 (Bloomberg) -- Harvard University’s failed bet that interest rates would rise cost the world’s richest school at least $500 million in payments to escape derivatives that backfired.


    Harvard has frozen employee salaries, slowed hiring, cut staff and offered other workers early retirement as part of a cost-cutting program to compensate for losses in its endowment. The fund, which dropped to $26 billion in value over the fiscal year from $36.9 billion, paid 38 percent of the school’s bills during that time, the report said.


    The home of Harvard Business School.
  2. Easy come easy go.
  3. Here's another one:

    The university disclosed yesterday that it had lost $1.8 billion in cash - money it relies on for the school’s everyday expenses - by investing it with its endowment fund, instead of keeping it in safe, bank-like accounts. The disclosure was made in the school’s annual report for the fiscal year that ended June 30.



    Back to 2005-6 levels, just like many others. No big whoop.

    Notice in the linking page, the graphic to the performance, clearly a little more optimistic. Looks like the Harvard ego is in denial:


  4. The fund, which dropped to $26 billion in value over the fiscal year from $36.9 billion.

    Gee can I get a degree from these geniuses to lose 30% a year?:D
  5. +1 :p ... exactly!

    the retards weren't even paying attention to basic risk management, risking money that they couldn't afford lose, trading with money that they had earmarked for other activities, and going all-in on their counter-trend derivatives trade, among other bad bets.

    Just ... LMAO :D
  6. stupid fuckers :D :p :eek: