Harvard Reports $1.8 Billion Loss

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CAMBRIDGE, Mass. (Oct. 16) -- Harvard University said Friday it lost $1.8 billion in operating cash in the last fiscal year as a result of investing it alongside the university's endowment.

The loss was revealed in Harvard's fiscal 2009 operating report.

The university said in the report that it has routinely pooled cash held in various schools and departments and invested a significant portion of it with Harvard Management Co., which manages the endowment. While this approach had generated "significant positive investment results" for the university in the past, this past year it resulted in losses to the cash account.

Harvard had previously reported that the value of its endowment — the largest of any university in the nation — dropped by nearly $11 billion in fiscal 2009 from $36.9 billion.

Harvard slashed 275 jobs and made other cost-cutting moves earlier this year.

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2009-10-16 18:50:24