Harvard University’s endowment fell by 22 percent—or more than $8 billion—over four months, officials announced this week, according to the Harvard Crimson.
The losses from higher education’s largest endowment, which fell from $36 billion, total more than Columbia’s entire endowment of $7.15 billion. The nosedive, the Crimson reported, marks Harvard’s largest downturn in recent history.
On Nov. 26, the Crimson also reported that University president Drew Faust and Executive Vice President Edward Forst wrote in a letter to deans that Harvard would take a “hard look at hiring, staffing levels, and compensation.”
Spectator was interviewing University President Lee Bollinger at his home when he heard the news. “That’s more than eight,” he said with downcast eyes. “That’s unbelievable.”
Bollinger said that Columbia’s endowment has taken a serious hit as well, although the most recent set of data released—Columbia only divulges reports once a year—doesn’t show it. But he added that since Columbia’s investments have been more conservative, it is bound to have fewer losses than its riskier Ivy counterpart.
“Whether this will fall off or keep on the same trajectory, we simply don’t know,” Bollinger said. “On the endowment, we’re not ready to publish a number. I am confident it will not be that big a number [in losses]. Nevertheless, we have sustained a significant decline, but not as significant as other institutions.”
Meanwhile, Bollinger said Columbia would proceed cautiously and expect the worst while keeping the University’s momentum going. According to an e-mail Bollinger sent to students in November, the administration has already instituted a “hiring review committee” to investigate “every new or vacant position before allowing it to be filled.” The e-mail said Provost Alan Brinkley and Executive Vice President for Finance Anne Sullivan are meeting with the deans of each Columbia school to figure out how to best cut costs without shortchanging the University.