Harvard University’s admission that it lost $8 billion from its $36 billion
endowment fund, as staggering as it sounds, may grossly underestimate the true magnitude of the
loss between from July 1 through Oct. 31 2008. According to a source close the Harvard
Management Corporation (HMC), which runs the fund for Harvard, the loss is closer to $18
billion if the losses on the fund’s illiquid investment are realistically appraised.