Carnegie Mellon University has joined other schools in disclosing steep financial losses this year amid the recession, reporting a nearly 23 percent drop in net assets as of June 30 and endowment losses approaching 27 percent.

The university's "overall financial position remains solid despite the extraordinary turmoil" in the economy and capital markets, vice president and chief financial officer Deborah Moon said in a summary contained in the school's newly released consolidated financial statements.

The document, public as of this week, said Carnegie Mellon's net assets at the close of 2008-09 totaled about $1.2 billion, down by $366.7 million from last year's total of nearly $1.6 billion.

The university saw a 26.7 percent net loss on its endowment investments through June 30, the 41-page report states. It said the school's endowment market value shrank to $754.1 million from just over $1 billion a year ago.

Nationwide, the recession has hit finances of public and private campuses hard.

Endowments and affiliated foundations saw, on average, investment losses of 19 percent, according to preliminary findings released Dec. 10 from a joint study by the National Association of College and University Business Officers and Commonfund.

In an e-mail response to questions, Carnegie Mellon President Jared Cohon said yesterday that his school's endowment losses exceeded the national average in part because Carnegie Mellon, at the suggestion of its external auditors, took a write down of $49.1 million -- equal to 100 percent of its investment with Westridge Capital Management.

In February, two Westridge investment managers were charged with securities fraud. For months, Carnegie Mellon and other institutions that invested with the firm -- including the University of Pittsburgh, which invested almost $70 million -- have sought in court to recoup their losses.

"If Westridge had not been written down to zero, our (endowment) loss would have been approximately 21 percent, instead of 26.7 percent," Dr. Cohon said.

He said the court has not yet determined how some $900 million in liquid Westridge assets will be distributed.

"Carnegie Mellon will continue to pursue aggressively the full recovery," he said.

Another reason why Carnegie Mellon's losses outpaced the national average was the survey itself, which included "smaller endowments that tend to invest in lower return and lower risk investments," Dr. Cohon said.

School officials said Carnegie Mellon's losses were similar to those of peers, including Harvard, Yale and Brown universities, which reported year-end losses of 27, 25 and 23 percent, respectively.

During the fall months, gains in the stock market eased endowment losses at some universities. For instance, the University of Pittsburgh reported this month that its endowment, which stood at $1.87 billion on June 30, had again surpassed the $2 billion mark.

Carnegie Mellon spokesman Ken Walters yesterday did not have a fall figure for his school's endowment. The university's offices are closed for the holidays.

Despite investing losses, Carnegie Mellon officials said other financial indicators remained strong, including research and enrollment income.

According to the financial statements, revenue from research and other programs sponsored by government, industry and other sources totaled $318.4 million as of June 30, up from $296.1 million a year ago.

Undergraduate and graduate enrollment grew by 556 students to 10,958. Income from tuition and fees, after financial aid is factored in, grew by 9.4 percent to $312.7 million.

The school also reported a $13 million operating budget surplus, in part due to spending reductions.

The annual report suggests that Carnegie Mellon shifted its investment mix toward alternative investments -- 42.6 percent of total investments as of June 30, compared to 31.6 percent in 2008.

A summary by Chief Investment Officer Edward Grefenstette contained in the financial report says "recent changes designed to specifically enhance the university's investment program and the continued generosity of the university's alumni and friends" make Carnegie Mellon confident of long-term endowment growth.

Mr. Grefenstette could not be reached for comment yesterday. Mr. Walters said he did not know what changes Mr. Grefenstette referred to.

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