How to Lose a Billion Dollars in Hedge Funds

Take Apart:

Overall, it’s a swing in the financial fortune of one of the country’s top private universities and one of the world’s most esteemed Jewish institutions of more than $1.3 billion, well more than 10 times the losses from the portion of Yeshiva’s portfolio invested with Madoff. Students who applied to and enrolled at a school that had spent aggressively for 10 years now find themselves at one where drastic budget cuts need to be taken, assets need to be sold off, and key operations relevant to the school’s status as a top-tier institution, such as the graduate schools, are being cut. To get back on track, Yeshiva would have to find a way to generate growth in the school’s student and donor base (e.g., tuition hikes, increases in enrollment, and funding solicitations) sufficient to balance its budget and pay down its debt, while slashing its budget and selling off assets in a way that doesn’t hamper that growth. Yeshiva is now selling off at least ten of its buildings in an effort to generate cash, and it has entered into an agreement with Montefiore Medical Center to operate the university’s medical school in a deal that rids Yeshiva of a major annual expense while risking its status as a leading research university.

Yeshiva had a greater % of Hedge Fund investment than any other University endowment in America:

How to lose a fortune


EPIC FAIL: Sell bonds, Swap into Hedge Funds


Source: Take Apart


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