Wednesday, December 24, 2008

Maybe it's even worse than they said

Harvard University's admission that it lost $8 billion from its $36 billion endowment fund, as staggering as it sounds, may grossly underestimate the true magnitude of the loss between from July 1 through Oct. 31 2008. According to a source close the Harvard Management Corporation (HMC), which runs the fund for Harvard, the loss is closer to $18 billion if the losses on the fund's illiquid investment are realistically appraised.
--Edward Jay Epstein, Huffington Post, on why Harvard's FAS is "panicking" (in the words of one Harvard professor I spoke to)

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