Harvard-backed TPRV Capital is shutting down its hedge fund after traders pulled their money.
After three-and-a-half years, “we’re unwinding the fund and returning all remaining capital to our traders,” the agency wrote in a letter to purchasers Friday.
Institutional traders have been redeeming both because of disappointment over the fund’s efficiency or as a result of they had been reallocating their money away from fixed-income relative worth or volatility methods, Chief Working Officer Luca Toscani stated in an interview.
“Sadly the combo of the 2 was deadly,” he stated.
The agency, which had peak property of $820 million on the finish of 2019, noticed that plunge to $570 million by August 2020, and $233 million by this February. TPRV’s fund misplaced 2.8% in 2020, and was about flat within the first two months of this 12 months, based on one other doc.
Final 12 months introduced “one of many greatest challenges” the fund’s chief funding officers had seen of their skilled lives as relative worth trades linked to shorting S&P 500 index volatility went awry and led to sharp losses, the agency said on the time.
TPRV launched in 2017 with about $400 million from Harvard Administration Co, the place CIOs Graig Fantuzzi and Michele Toscani had been portfolio managers and had labored collectively for 8 years.
The agency is contemplating its subsequent steps, which might embody elevating capital or becoming a member of a bigger platform agency, Toscani stated.
That is the second fund with ties to Harvard to shutter not too long ago. In Could 2019, former Harvard portfolio supervisor Marco Barrozo closed his Cambridge Sq. Capital, which had began two years prior and obtained $200 million from the college.