Photographer: Maddie Meyer / Getty Images
Photographer: Maddie Meyer / Getty Images
Supported by Harvard TPRV Capital closes its hedge fund after investors withdrew their cash.
After three and a half years, “we run the fund and return all the remaining capital to our investors,” the company wrote in a letter to customers on Friday.
Institutional investors redeemed either because of disappointment with the fund’s performance or because they reallocated their money outside the relative value of fixed income or volatility strategies, chief operating officer Luca Toscani said in an interview.
“Unfortunately, the combination of the two was lethal,” he said.
The company, which had maximum assets of $ 820 million at the end of 2019, decreased to $ 570 million by August 2020 and $ 233 million by February. The TPRV fund lost 2.8% in 2020 and was roughly flat in the first two months of this year, according to another document.
A tough 2020
TPRV has struggled to make money since 2019
Source: documents for investors
Last year brought “one of the biggest challenges” the fund’s chief investment officers had seen in their professional lives, as relative value transactions related to the volatility of the S&P 500 index worsened and led to sharp losses. he said at that moment.
Read more: Hedge Fund goes “soul searching” after Covid wreaks havoc
TPRV was launched in 2017 with approximately $ 400 million from Harvard Management Co., where CIO Graig Fantuzzi and Michele Toscani were portfolio managers and had worked together for 8 years.
The firm is considering the next steps, which could include raising capital or joining a larger platform firm, Toscani said.
This is Harvard’s second fund that has recently closed. In May 2019, former Harvard portfolio manager Marco Barrozo it closed its capital, Cambridge Square, which had begun two years earlier and received $ 200 million from the university.