Harvard Takes an $8 Billion Hit

Ouch! Harvard’s money managers report that its once burgeoning endowment, which stood at $36.9 billion as of June 30, has taken a hit along with the rest of the market. The Wall Street Journal calculates the loss at $8 billion in the four months July 1 through October 31. In a letter to Harvard's deans, university President Drew Gilpin Faust blamed "severe turmoil in the world's financial markets" for the loss. Harvard said the actual loss could be even higher, once it factors in declines in assets like real estate and private equity. The university is planning for a 30 percent decline in total for the fiscal year ending June 2009.