Report: Stanford University portfolio shrinks 26 percent, fund value falls $5.9 billion

Report: Stanford Univ. portfolio shrinks 26 pct

PALO ALTO, Calif. — A new report from Stanford’s money managers says the value of the university’s investment portfolio plunged nearly $6 billion over the last fiscal year, a drop university officials called unprecedented.

The Stanford Management Company reported the university’s major investment pool, which includes its endowment, fell from $20.4 billion at the end of June 2008 to $14.5 billion at the end of June 2009.

The decline included a nearly 26 percent loss on investments as well as direct spending of the principal to keep the university running.

Endowment losses have led to a university-wide salary freeze, more than 400 staff layoffs and the postponing of $1.1 billion in capital projects.

The university’s losses closely tracked the S&P 500 and other universities’ declines.