Harvard Yet to Measure Endowment Shrinkage

Photo of Porcellian Gate tagged "Bostonist" by Flickr user AntyDiluvian.

Already $8 billion in the hole, Harvard Management Co., the fund's overseers, have yet to account for probable declines in private equity and real estate investments, the valuation of which takes much longer than other types of assets. On top of that, as Slate's Edward Jay Epstein reports, Harvard Management's arcane accounting practices might be concealing even further losses. Epstein thinks that Harvard's may have lost as much as $18 billion, closer to the 22% decline in university endowments nationwide.

Anxiety over its endowment has yet to bring Harvard to the edge of panic. (It hasn't had to auction off its priceless paintings, for example.) Nonetheless, the University is hoping that the Commonwealth will pass legislation so that it can use what little it now has.

Previously: What Can You Get for $8 Billion?