Every investment portfolio on the planet took a beating in 2008 other than Steve Eisman’s and Michael Burry’s.
Right. This was exacerbated by the market but fundamentally was mismanagement.
"Dr. David Pollick, believed he could grow the College’s enrollment by 50 percent to 1,800 students through significant capital investments. Pollick oversaw an aggressive building program, adding LEED-certified residence halls, athletic facilities, an admissions welcome center, and a manmade lake, among other projects.
The implementation of these ambitious capital projects – and the assumption of large debt to fund them – coincided with two factors that led to a decade-plus-long financial struggle:
The crash of the financial markets in 2009, in which BSC sustained a $25 million loss to the value of its endowment.
The discovery in 2010 of a material error in the budgeting of federal student financial aid, which came to about $5 million per year against a budget of $49 million.
These factors led to millions of dollars in budget cuts, the elimination of five majors and 29 faculty positions, and the suspension of the faculty and staff’s generous retirement match. The crisis triggered an additional $12 million draw on the endowment by the end of the 2009-2010 fiscal year. Pollick resigned in August 2010."