Oct. 17 (Bloomberg) -- Harvard Universityâs failed bet that interest rates would rise cost the worldâs 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 schoolâs bills during that time, the report said. http://www.bloomberg.com/apps/news?pid=20601087&sid=aHou7iMlBMN8 The home of Harvard Business School.
Here's another one: The university disclosed yesterday that it had lost $1.8 billion in cash - money it relies on for the schoolâs everyday expenses - by investing it with its endowment fund, instead of keeping it in safe, bank-like accounts. The disclosure was made in the schoolâs annual report for the fiscal year that ended June 30. http://www.boston.com/news/educatio..._18b_in_cash_placed_in_high_risk_investments/ 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: http://www.hmc.harvard.edu/investment_performance/
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?
creators of leaders; be careful what kind of leaders you're producin' here http://www.youtube.com/watch?v=TKAxnB6Ap4o
+1 ... 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