Remember the good old days? The latest financial sporting fad was predicting the imminent death of private equity. LIBOR meant something. Someone was going to make a killing in commodities, you'll see. Endowments were the BSD's to emulate on the buy side. Yeah, that's definitely over with this news:
The dean of Harvard's Faculty of Arts and Sciences has called for an immediate freeze on staff hiring and strongly encouraged department heads to consider canceling faculty searches.
In an e-mail to department heads Monday, Michael Smith, dean of the largest Harvard faculty, outlined immediate steps in response to the worsening economic climate.
"Given our heavy reliance on endowment income, these losses will have a major and long-lasting impact - one that will require significant reductions in our annual expenses," Smith wrote.
Harvard's endowment before the economic crisis was $36.9 billion. It's unclear how far it has fallen, but Faust recently referenced a Moody's projection of a 30 percent decline in the value of college and university endowments this fiscal year.
Then again, -30% is the new "killing it" so, perhaps someone should give those guys a raise.
Harvard freezes staff hiring, scrutinizes faculty searches [The Boston Globe]