UW Investing.

[tomtom]

Speaking of the (other) rocket scientists at UW:

 

As is customary, Northern offered UW the option to offset its custodial fees, and perhaps earn something extra, by allowing Northern to lend some of the university's stock holdings to investors looking to sell the shares short, a way of betting that shares' value will decline.

 

UW would lend the shares and get collateral worth 102 percent of the value of the stock. That, in turn, would be invested through a commingled account with other institutional clients in short-term securities promising a slightly higher yield than that from U.S. Treasuries.

 

UW earned steady revenue from the arrangement, more than $600,000 in 2007 alone. But profits abruptly turned to losses following the Lehman bankruptcy.

 

On Sept. 17, the lawsuit says, Northern informed UW that it had lost $750,000 in the program. That day, UW officials sent Northern an e-mail and a faxed letter asking to end its participation in the program and demanding return of its securities.

 

The response came on Sept. 19, when Northern told UW its loss had ballooned to $5.3 million. Then came notice on Sept. 23 that the loss had shot up again, to $7.5 million.

 

UW forgot Rule #1 of Investing: Risk and return are related. You don't get one without the other.

 

The rest of the story.

 

 

[ZimZam]

Invest in a new head coach. Willingham sucked at ND and still does a UW