OTHER NEWS - July 26, 1995
<i> Times Staff and Wire Reports</i>
College Investment Losses Mount: A small Pennsylvania investment firm that lost $138 million in college endowment funds through risky trades does not have insurance or sufficient assets to cover the losses, it was disclosed. The loss is nearly 8% more than initial estimates of the losses blamed on a trader at First Capital Strategists Inc., who has since been suspended. The new disclosures were made by the nonprofit Common Fund, which manages $20 billion for more than 1,400 colleges and universities, in an eight-page letter to member schools. The letter raises fresh doubts about how much universities and colleges can expect to be reimbursed for the losses in invested endowments.
