Photographer: Maddie Meyer / Getty Images
Photographer: Maddie Meyer / Getty Images
Harvard Support TPRV Capital is discontinuing its hedge fund after investors withdrew their cash.
After three-and-a-half years, “we are withdrawing the fund and returning all remaining capital to our investors,” the firm wrote in a letter to clients on Friday.
Institutional investors have alternated because of disappointment over the fund’s performance, or because they have reallocated their cash from relative value or fixed income volatility strategies, chief operating officer Luca Toscani said in an interview.
“Unfortunately, the combination of the two was deadly,” he said.
The firm, which had a peak asset of $ 820 million at the end of 2019, fell to $ 570 million by August 2020 and 233 million by February. TPRV’s fund lost 2.8% in 2020 and was roughly equal in the first two months of this year, according to another document.
A difficult 2020
TPRV has struggled to make money since 2019
Source: investor documents
Last year, ‘one of the biggest challenges’ presented by the chief investment officers in their professional lives as relative value trading linked to the shorting of the S&P 500 index volatility went wrong and led to huge losses. said at the time.
Read more: Hedge Fund Goes ‘Soul Searching’ After Covid Havoc Unleashed
TPRV started in 2017 with about $ 400 million from Harvard Management Co., where CIOs Graig Fantuzzi and Michele Toscani were portfolio managers and worked together for 8 years.
The firm is considering its next steps, which could include raising capital or joining a larger platform company, Toscani said.
This is the second fund recently linked to Harvard. In May 2019, former Harvard portfolio manager Marco Barrozo includes Cambridge Square Capital, which started two years earlier and received $ 200 million from the university.