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Harvard Lost Record 27% On Investments

From Bloomberg:

Harvard’s Governing Board Expanding to 13 Members in Wake of Record Losses

By Oliver Staley – Dec 6, 2010

The managing board of Harvard University will almost double in size, adding seats for the first time since the board’s creation in 1650, after a financial crisis forced Harvard to borrow $2.5 billion.

The body, known as the Harvard Corporation, will also establish term limits for members and create three committees to focus on finance, facilities and governance, the university in Cambridge, Massachusetts, said today in a statement on its website. The governing board is now composed of six members plus the president, Drew Faust, and will grow to 13 members in two or three years.

Somehow it just seems fitting that the President of Harvard should be named Faust.

Harvard, which had a $27.6 billion endowment as of June 30, lost a record 27 percent on its investments in the year ended June 30, 2009. The university agreed to pay almost $1 billion to terminate wrong-way bets it made on interest-rate swaps, and it borrowed $2.5 billion in December 2008 because investments were tied up in hard-to-sell assets

Bear in mind that much of our economic policy is set by Harvard economists. Which goes a long way towards explaining why we are in the mess we are in.

This article was posted by Steve on Tuesday, December 7th, 2010. Comments are currently closed.

5 Responses to “Harvard Lost Record 27% On Investments”

  1. proreason says:

    Obviously George Soros isn’t advising them

  2. tranquil.night says:

    “interest-rate swaps” sound way more innocent to board members and the press than “collapsed carbon trading scam.”

  3. NoNeoCommies says:

    Not unexpected when you realize they don’t live in the real world.

  4. Right of the People says:

    More warped liberal logic. This is why our government is so screwed up!

    A board of 7 manages to screw up their investments so instead of streamlining operations of course the logical answer is to double the board so they can make twice as many mistakes. Always grow the governing body, no matter what it is, bigger is ALWAYS better. Good thinking comrades.

  5. Chuckk says:

    If doubling the size of the governing board will stem the losses, why not triple it? Then it could make tons of money.

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