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Size Matters: Endowment Troubles Traced to Venture Capital

Even though venture capital was a problem this year, the overall return of 12.2 percent was more than 10 percent above the inflation rate, according to HMC.

"Our long-term goal is inflation plus 6 to 6.5 percent," Huidekoper says. "So we absolutely met our goal."

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"The problem we had in 1999 is sort of overwhelmed by our other numbers, and it turned out just fine," Meyer says.

With investments in these areas still producing steadily, Meyer said in a September letter from HMC to "friends of Harvard" that according to a five-year timetable, Harvard is still "on target."

With extremely high yields in recent years and a campaign that pumped over $2.2 billion into the University's coffers, Harvard is still the richest it's ever been.

"Fortunately, the strong results of recent years have provided a cushion against the inevitable rainy days, weeks, or even years that may lie ahead," Meyer says.

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