Friday, September 11, 2009

Yale Endowment Down 30%

You live by voodoo econometrics, you lose money be voodoo econometrics.

Yale falls in line with Harvard.

In a letter to Yale faculty and staff, Richard Levin, the school's president, and Peter Salovey, its provost, said the school endowment had fallen to $16 billion, more than expected, and representing a 30% annual decline.

The recent rebound in the stock market hadn't had a "substantial effect" on its illiquid assets, Yale said yesterday.

According t the letter the school now projects an annual deficit of $150 million each year from 2010-2011 through 2013-2014, even after a previous round of cuts.

The letter said that on top of a 7.5% cut in staff and non-salary expenses in the current academic year, Yale would ask for another 5% in non-salary cuts this year instead of next year.

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