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Harvard has traditionally pooled cash from the University’s various schools in a General Operating Account that is invested alongside the endowment—a practice that the report said “generated significant positive investment results” in the past. But this year, that strategy backfired, dragging the value of the GOA down from $6.6 billion last year to $3.7 billion this year. Part of that decline reflects the payments made to terminate interest rate swap agreements...

Author: By Peter F. Zhu, CRIMSON STAFF WRITER | Title: University Pays $500 Million To Cut Losses | 10/19/2009 | See Source »

Harvard’s investment strategy, which has long emphasized broad diversification of assets, has also made the portfolio more illiquid, or difficult to convert back into cash. This has proved especially problematic amid the broadly slumping markets of the past year...

Author: By Peter F. Zhu, CRIMSON STAFF WRITER | Title: University Pays $500 Million To Cut Losses | 10/19/2009 | See Source »

This weekend, the Boston Globe’s article on Harvard’s financial report suggested that the University’s decision to invest short-term cash alongside higher-risk endowment assets was unusual, and cited Stanford spokeswoman Lisa Lapin as saying that her school “wouldn’t take a cash account and invest it with the endowment...

Author: By Peter F. Zhu, CRIMSON STAFF WRITER | Title: University Pays $500 Million To Cut Losses | 10/19/2009 | See Source »

...Shore, Harvard’s CFO, also told The Globe that the GOA losses did not prevent the school from meeting its existing obligations, and that the University’s cash position was secured by new debt issued by the school this year. Nevertheless, Shore said in an interview posted by Harvard that the school has adjusted its investment strategies to emphasize short-term flexibility and cash needs and will continue pursuing such “rebalancing efforts” in the future...

Author: By Peter F. Zhu, CRIMSON STAFF WRITER | Title: University Pays $500 Million To Cut Losses | 10/19/2009 | See Source »

...quickly get tax refunds. Another provision under consideration would extend tax breaks that would allow companies to quickly write off the costs of new purchases. Though many of these provisions could be acted upon before the end of the year, another stimulus proposal to send more federal money to cash-strapped states in 2011 is likely to be put off another year. The February stimulus bill provided about two years of additional state funding. (Read "How to Spend a Trillion Dollars...

Author: /time Magazine | Title: The White House Readies a Stealth Stimulus | 10/19/2009 | See Source »

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