Yes, University endowments, heavily reliant on alternative investments that have had the stuffing kicked out of them lately, have taken it on the chin. Still, don’t worry about the University of Virginia. They have things totally under control. No, seriously. Their soothing Lehman Letters should wash all your worries away.
The open letter to the UVa community is the third issued by the University of Virginia Investment Management Co. in the last three weeks, but the first from company CEO Chris Brightman.
Brightman focused on the endowment’s long-term pool over the last year and how in the last four months those investments have lost roughly $1 billion. That equates to roughly a 21 percent loss in the endowment pool’s value from October 2007 to October 2008, Brightman wrote.
“To be sure, this is a startlingly large loss,” Brightman wrote. “When put into appropriate context, however, it starts to seem less disturbing.”
Brightman noted that while the endowment pool lost $1 billion recently, it grew $1.6 billion between June 2005 and June 2008, leaving the pool $600 million ahead, or at roughly $4.1 billion overall.
We have intensely enjoyed the various version of Lehman Letters that the crisis has been presenting us. Someone should put a “Dear Investor” collection up somewhere. Letters on a time-line set next to the net worth of the entity at the time could develop into a very entertaining exhibit at MOMA. Extra points if each instance of “sufficient liquidity” or derivation thereof is highlighted.
University endowment firm insists strategies sound [The Daily Progress]
didnt read, too UVA
Traders don’t lose money; endowments do.
C’mon this piker is not even Ivy League. You gotta be Ivy to post a REAL loss !
Washington and Lee is THE University of Virginia
Hey -= don’t all of these execs get health care and benefits? I bet they are better than what the UAW workers get.
http://yourmortgageoryourlife.wordpress.com/2008/09/23/liars-and-the-lying-lies-they-are-telling-you/
How come we are not concerned about how much their benefits cost when we bail them out with an $8.5 Trillion give-away, but we give UAW workers a hard time for their benefits when they only need a $25 Billion Loan?
To make matters worse UVAla got their ass beat in basketball by Liberty University. As in Jerry Falwell’s school. Their football team sucks and the president (board member of Wachovia)walks around as if he his mainlining valium.
EP – I think the Dear Investor collection is a great idea. Sounds like the ball (and the letters) are in your court, though. I’m too busy collecting cans and bottles out behind the Shop Rite.
VMI is better than Washinton and Lee.
Oh no not the commonwealth
i almost went to VMI, but then i didn’t.
Summary of Bond Offering
$600,000,000* MASSACHUSETTS HEALTH AND EDUCATIONAL FACILITIES AUTHORITY REV
HARVARD UNIVERSITY ISSUE, SERIES 2009A
Issuer: Massachusetts Health and Educational Facilities Authority
Par Amount: $600,000,000
Maturity Dates: November 15
Structure: Serial Bonds (2014-2023) and Term Bonds (2028, 2033 & 2036)
Bookrunning Managers: J.P. Morgan (Lead), Morgan Stanley
Senior Managers: Loop Capital Markets, Goldman Sachs
Co-Managers: Barclays Capital, Citi
Security: General obligation of the University
Expected Ratings: Moody’s: Aaa / Standard & Poor’s: AAA
Use of Proceeds: A portion of the proceeds of the Bonds will be applied tocurrently refund certain portions of outstanding variable rate debt issued by the Authority on behalf of the University. The remaining portion of the proceeds of the Bonds will be used to pay the costs of issuance and for certain other eligible corporate purposes, including financing certain payments to
be made by the University to terminate certain interest rate exchange agreements.
Tax Status: Federal Tax-Exempt; Massachusetts Tax-Exempt
Perhaps those bastards in their ivory towers might have to learn to live in the real world for a change.
Chris Brightman came from a Chicago bond shop…perhaps he should have stayed w/ the long duration theme…either that or consider a name change to protect the innocent
Chris Brightman came from a Chicago bond shop…perhaps he should have stayed w/ the long duration theme…either that or consider a name change to protect the innocent
uva doesnt have ivory towers.
V.M.I. SUCKS!!!
Their academic teaching is the worst.
Their freshman class average is the lowest I’ve ever seen. They boast on small classes…fine institution…a bunch of hogwash.
Go to Roanoke, W&L, Emory&Henry, Virginia Tech, UVA…anywhere BUT V.M.I. It is a cold unfriendly inhuman place. Tradition…my foot..VMI is the worst!!!
Go anywhere else in the nation….you’ll be glad you did!!
V.M.I. SUCKS!!!
Their academic teaching is the worst.
Their freshman class average is the lowest I’ve ever seen. They boast on small classes…fine institution…a bunch of hogwash.
Go to Roanoke, W&L, Emory&Henry, Virginia Tech, UVA…anywhere BUT V.M.I. It is a cold unfriendly inhuman place. Tradition…my foot..VMI is the worst!!!
Go anywhere else in the nation….you’ll be glad you did!!