Tufts loses $20 million in Madoff scandal

December 19, 2008 04:01 PM Email| Comments (5)| Text size – +

By Globe Staff

Tufts University has lost $20 million through an investment in a fund tied to financier Bernard Madoff, the Wall Street trader accused of running the biggest Ponzi scheme in history, the college's president said today.

The losses occurred through Tufts' stake in Ascot Partners, which in turn invested the sum with Madoff Securities, President Lawrence S. Bacow wrote in a letter e-mailed to the university community. The $20 million amounts to less than 2 percent of the school's endowment, he said.

"The news this past week has been dominated by a financial scandal of unprecedented
scale and scope,'' he said. "I am sorry to report that Tufts is one of a growing number of victims of the crimes allegedly committed by Bernard Madoff.''

Bacow said Tufts had written off the value of the bad investment and will "cooperate with any investigations of this fraud and will work to recoup as much of our investment as possible.''

Earlier this week, Yeshiva University in New York said it had lost about $110 million in investments tied to the Madoff scandal.

The losses attributed to Madoff coincide with tough economic times for colleges and universities, which have announced budget cuts and other steps to weather the financial downturn. Tufts is seeking $36 million in budget cuts for next year.

In his letter, Bacow said the write-off from the Madoff investment will not significantly affect the college's operations.

"We also have an obligation to our students and faculty to manage these resources wisely for their benefit,'' he said. "You have my word that we will look closely at our experience in this case so that we can strengthen our investment process for the future.''

» Back to Front Page

5 comments so far...

Tufts was victimized, if by anything, by its own stupidity.

Posted by TD December 19, 08 04:52 PM

Oh no. They lost 2%.

Posted by Nico December 19, 08 05:16 PM

The CIO of the endowment should be fired. You are paid to choose investment managers and complete due diligence. If you can't do it, hire a professional - its worth it, could have saved $20 mil.

Posted by Rick December 19, 08 05:22 PM

Nico,
Your attitude really ticks me off. Tufts was a victim. Tufts does not have a large endowment (especially compared to other schools in the area). Students needing financial aid and faculty and staff that are very modestly paid will all be very negatively impacted (jobs and programs will undoubtedly be cut). 20 million dollars could pay alot of salaries and tuitions for people who deserve and need them. All this on top of the fact that everyone's investments have taken serious hits in the stock market which will affect these colleges and the good people in their communities. It is truly a shame that so many people will be victimized by this Madoff creep. Why don't you try to be empathic instead of also victimizing them with your ignorance and negativity.
Good Will to All... Remember?

Posted by Tufts Alumna December 19, 08 05:59 PM

"You have my word" said Madoff and now others.

Posted by anonymous December 19, 08 06:09 PM