Princeton University tightens its belt

With the recent steep drop in its $16.3 billion endowment fund, Princeton (N.J.) University has begun to make budget cuts to offset its investment losses. Princeton is forecasting a $4.5 billion (25%) loss for its endowment fund for the fiscal year which ends June 30, university president Shirley Tilghman said in a letter released yesterday. However, the school’s endowment fund’s marketable securities performed better than the general market, falling 11% from July 1 to Oct. 31, compared with a 24% drop in that same time period for the Standard & Poor’s 500 stock index, Ms. Shirley stated.