Yale's endowment is performing like those of other major universities: miserably. The Ivy League school said today that its fund had plunged 25%, or $5.9 billion, to $17 billion since July, the New Haven Independent reports. Yale's president warned of a $100 million budget shortfall in the 2009 school year and said belt-tightening would be necessary.
“It is important to recognize,” wrote President Rick Levin in an open letter, “that $17 billion is still a very large endowment.” Yale's fund is closely watched because it's had the best performance with endowment investments over the last decade, the New York Times notes. It's gotten annual returns of 16.3% to Harvard's 13.8%. Earlier this month, Harvard said its endowment had dropped 22%, or $8 billion, to $36.9 billion.