Michigan Daily Compilation

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AN ILL EDUCATION Publishers think students need dope examples to make books interesting. They need to think again. n SEE OPINION, PAGE 4A

A FOND FAREWELL

In their home finale, the Wolverines’ blueliners outmuscled Western Michigan this weekend as the team advanced to the CCHA Semifinals. n SEE SPORTSMONDAY, INSIDE

ONE-HUNDRED-NINETEEN YEARS OF EDITORIAL FREEDOM Monday, March 16, 2009

Ann Arbor, Michigan

michigandaily.com

‘M’ dancing for first time since ’98 No. 10 seed Michigan to play No. 7 seed Clemson in first round Thursday

Thursday at 7:10 p.m. If the Wolverines win, they will face the winner of No. 2 seed Oklahoma and No. 15 seed Morgan State. “I knew that the country wants to see the block ‘M’ back at the dance,” Michigan Athletic Director Bill Martin said. “I think it’s a real defining moment for our program this year. It’s just upward going forward.” The Wolverines (20-13) have played their best basketball this season with their backs against the wall. Michigan was the 61st team to have its name called Sunday, which put the team through the grinder yet again. “It was very appropriate because that kind of sums up our season,” fifth-year senior C.J. Lee said. “We’ve been right there, back and forth all year.” When studio host Greg Gumbel finally said ‘Michigan’ on the CBS telecast, it was to the tune of hun-

By ALEX PROSPERI Daily Sports Writer

The Michigan faithful waited more than 4,000 days and watched more than 300 games in preparation for a day like Sunday. And judging by the turnout at Crisler Arena, it was worth the wait. For the first time since 1998, the Michigan men’s basketball team has earned an NCAA Tournament bid. CBS announced Sunday night that No. 10 seed Michigan would face No. 7 seed Clemson in the South Regional in Kansas City on

dreds of screaming fans who filled the lower bowl on the east side of Crisler Arena. Michigan coach John Beilein addressed the crowd after the show. “I don’t even know because of all the excitement, where are we going?” Beilein asked. Michigan waited more than a half hour to hear its name called — not an easy task for players or coaches. “I was so nervous,” fifth-year senior co-captain David Merritt said. “My stomach was turning over just to think that there was a chance we wouldn’t make it. Luckily and thank God that our name came up as a 10 (seed).” Added Lee: “Of course I was nervous. When you’re seeing all those spots being taken by teams that kind of are similar to yourself, we were just playing the waiting game.” Assistant coach Mike Jackson See TOURNAMENT, Page 3A

WILL MOELLER/Daily

Michigan players and fans celebrate in Crisler Arena last night moments after they found out they made the NCAA Tournament.

THE ANATOMY OF AN ENDOWMENT SERIES, PART 1

CAMPUS REMEMBERS

The multi-billion-dollar backbone At ‘U,’ Davidson As state funding dries up, the ‘U’ must rely more than ever on its endowment

Editor’s Note: Today’s story — a look at the financial investments that make up the University’s endowment, the individuals that manage it and the kinds of strategies they employ — is the first in the Daily’s four-part “The Anatomy of an Endowment” series. By ANDY KROLL Subsequent stories in the series Daily Investigative Editor will try to answer other important questions about the endowment, It’s often said that the Universilike why more endowment funds can’t be used for financial aid, how ty of Michigan, the state’s flagship the University’s investors take institution of higher education, is into account social responsibil- about as close to a private school ity and ethics when managing the as a public university can get. On the one hand, this can be endowment’s funds and how the global financial crisis will impact attributed to the University’s the endowment in the months and impressive alumni base and the fundraising success that comes years ahead. By the end of the series, our goal with such a vast alumni is to have dissected, described and netanalyzed in simple terms an intricate financial portfolio — one that is critical to the University’s day-to-day 11.6 percent operations and $757 million** long-term success.

work — both characteristics of elite private universities. But declining state funding has pushed the University further in the private direction. Since the 2002 fiscal year, annual appropriations funding from the state government has decreased almost $97 million when measured for inflation. As a result, the University has been forced to rely more than ever on its multi-billion-dollar endowment to fund its academic departments, provide financial aid for students, pay for other University operations and essentially keep the University in business. Yet despite the endowment’s increasingly vital importance to the University, very few people

2 FIXED INCOME

1 ENERGY

8.7 percent $569 million

8 REAL ESTATE

15.4 percent $1.01 billion**

understand what the endowment is, what it’s comprised of, how it functions, who manages it and, most of all, how decisions are made concerning how much of those billions of dollars can be spent at any given time. “Almost the entire public doesn’t understand what endowments are,” said University President Mary Sue Coleman in an interview last fall. “Very, very intelligent people, you know, some of our donors will say to me, ‘Well, why don’t you just spend more of the endowment?’ And I say, ‘Wait, wait, wait. Let me explain it to you.’ ” Given the dire financial situation facing the state, many wonder how reliable a source of funding state appropriations will be for the University moving forward. And with the endowment compensating for dwindling state funding, it becomes increasingly imporSee ENDOWMENT, Page 7A

3 PRIVATE EQUITY

6.5BILLION*

14.7 percent $ 958 million**

DOLLARS: THE ANATOMY OF AN ENDOWMENT

7 STOCKS INFOGRAPHIC BY ANGELA CHIH AND MAUREEN STYCH

20.4 percent $1.33 billion

17.9 percent $1.17 billion

1 ENERGY This asset class includes investments in oil exploration and extraction companies as well as oil and gas service companies.

2 FIXED INCOME

Better known as bonds, these investments are essentially loans which collect interest, and later, the principal amount is repaid.

WEATHER TOMORROW

4 VENTURE CAPITAL

HI: 69 LO: 42

3 PRIVATE EQUITY

SOURCE: UNIVERSITY BOARD OF REGENTS MONTHLY INVESTMENT REPORT THROUGH DEC. 31 FILED FOR FEBRUARY 19, 2009 MEETING *TEMPORARY VALUE FOR UNIVERSITY ENDOWMENT AS OF DEC. 31 **THESE FIGURES REFLECT SEPT. 30, 2008 VALUES FOR THE ENDOWMENT’S ILLIQUID ASSETS — THE MOST RECENT DATA AVAILABLE

5 CASH

Private equity investments are often partnerships with funds that acquire and restructure companies and later try to sell them for a profit.

The endowment contains a small amount of cash holdings. University investors, however, try to minimize cash due to its low performance.

The University invests in various venture capital firms, which use their funds to invest in start-ups with long-term growth potential.

This asset class is an aggregate of investments and strategies employed by investors aimed at posting positive returns every quarter.

4 VENTURE CAPITAL

6 ABSOLUTE RETURN

GOT A NEWS TIP? Call 734-763-2459 or e-mail news@michigandaily.com and let us know.

Bill Davidson, Detroit Pistons owner and Ross School of Business alum, passed away last Friday at the age of 86. Davidson died at his Bloomfield Hills home, and although the cause of death is still unknown, Davidson’s health had been poor for the last few years. The funeral DAVIDSON will be held at Congregation Shaarey Zedek in Southfield, Mich. Tuesday at noon. University President Mary Sue Coleman wrote in an e-mail statement Saturday that Davidson will be greatly missed here at the University. “It was always a pleasure to spend time with him, and my thoughts are

By JENNA SKOLLER Daily Staff Reporter

7 STOCKS These are the endowment’s U.S. and international stock holdings, which include investments in companies like AT&T and Exxon Mobil.

8 REAL ESTATE

The University invests in real estate managers in the U.S. and abroad who engage in real estate acquisition and development.

NEW ON MICHIGANDAILY.COM How Selection Sunday went for the Big Ten. THEGAME.BLOGS.MICHIGANDAILY.COM

Daily Staff Reporter

Former MSA president Prof. Scott Page will moderate

3.4 percent $222 million

$

By VERONICA MENALDI

with Karen and their family,” Coleman wrote in the e-mail to The Michigan Daily. “We will miss him, and we will honor his legacy as a dedicated and successful alumnus.” As part of his legacy at the University, Davidson created the William Davidson Institute in 1992 at the Ross School of Business. The institute, according to its website, is a “non-profit, independent, research and educational institute dedicated to developing and disseminating expertise on issues affecting firms in transition and emerging market economies.” WDI Executive Director Robert Kennedy, who worked with Davidson over the past six years, wrote in an e-mail to The Michigan Daily Saturday that Davidson loved to help however he could, and was truly a great man. “Bill Davidson was a business visionary, a great philanthropist and a dedicated family man,” he wrote. “He was incredibly generous to the University of Michigan. “One of the nice things was that it was never about him. Bill always encouraged us to aim high and to accomplish great things,” he wrote. “The thing he said most often was, ‘How can I help?’ ” See DAVIDSON, Page 3A

MSA presidential candidates to square off in debate tonight

7.9 percent $514 million**

5 CASH

%

Pistons owner, University alum passed away at the age of 86 on Friday

STUDENT GOVERNMENT ELECTIONS

$ 6 ABSOLUTE RETURN

left lasting legacy

INDEX

In the midst of one of the most competitive Michigan Student Assembly election races in recent history, the presidential and vice presidential candidates from each party will engage in a debate at 7:30 tomorrow night in the Palmer Commons Auditorium. All three parties in the election — the Defend Affirmative Action Party, the Michigan Vision Party and the reMichigan Campaign —

Vol. CXIX, No. 109 ©2009 The Michigan Daily michigandaily.com

will take part in the debate, which WOLV-TV will broadcast on channel 55 and stream to its website. Vice presidential candidates will field questions from Political Science Prof. Scott Page, who was MSA president from 1984-1985, until 8 p.m., at which point presidential candidates will take the stage until the close of the debate at 9 p.m. Page said he thinks student leaders offer a unique perspective on improving campus-wide issues. “When I was a student, I was convinced that students had some of the best ideas for how to improve the University,” he said. “I still think that’s true.” Page will pose a series of questions to the candidates, who will See DEBATE, Page 3A

NEWS................................. 2A OPINION........................... . 4A ARTS................................. . 5A

SUDOKU............... . . . . . . . . . . . . . 5A CL ASSIFIEDS......................6A S P O R T S M O N DAY. . . . . . . . . . . . . . . . .1 B


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Michigan Daily Compilation by Angela Chih - Issuu