Cornell has invested heavily in domestic common stocks and has about 11 percent of its endowment in hedge funds, Clarke says. Both of these investments can prove more risky than common bonds and cash.

Brown University's endowment has decreased by 10.3 percent from June to August. Mark Nickel, a spokesperson for the school, says Brown investors blame the decline partly on the funds that the school has put in emerging markets.

Dartmouth College has large equity investments to which the college's investors attribute the endowment drop. In June, the endowment totaled $1.52 billion, and it has dropped 6.5 percent since then.

Jonathan C. King, director of investments at Dartmouth, says most investors with money in equities have experienced losses. But he says he takes the long-term view. "Over time, if you measure performance of things like equities over 10 or 20 years, they outperform bonds and cash. It makes sense to be invested in things like equities," he adds.

Investors at most of the other Ivy League schools also say they evaluate their financial performance on a long-term basis and do not concern themselves too much with the day to day fluctuations. All the schools interviewed had experienced increases in endowment value from June 1997 to June 1998. None of the schools say they are planning to cut spending or change strategy, a plan market-watchers say is well-advised.

"Seven to 10 percent declines rarely will affect the financial health of a university in the short run," says John C. Nelson, senior vice president at Moody's Investors Services in New York. "This is where we are seeing the benefits of being prudent."

In fact, Nelson says, value drops of only seven to ten percent are "not bad" considering the fluctuations of the markets. So, investors agree, the key is to sit tight and hope for the best.