TPRV backed by Harvard to unwind hedge funds and return external liquidity

TPRV backed by Harvard to unwind hedge funds and return external liquidity

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Photographer: Maddie Meyer / Getty Images

Backed by Harvard TPRV Capital is closing its hedge fund after investors withdrew their cash.

After three and a half years, “we are unwinding the fund and returning any remaining capital to our investors,” the company wrote in a letter to clients on Friday.

Institutional investors made redemptions either because of disappointment with the fund’s performance or because they were reallocating their liquidity away from relative value or fixed income volatility strategies, said the managing director of the fund. exploitation, Luca Toscani, in an interview.

“Unfortunately, the combo of the two was lethal,” he said.

The company, which had peak assets of $ 820 million at the end of 2019, saw that amount plunge to $ 570 million in August 2020 and to $ 233 million in February. TPRV’s fund lost 2.8% in 2020 and was roughly stable 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

The past year brought “one of the biggest challenges” that the fund’s investment managers have seen in their working lives, as relative value trades linked to the volatility of the short S&P 500 index have gone awry. and resulted in heavy losses, the company said at the time.

Read more: Hedge Fund goes ‘soul searching’ after Covid wreaks havoc

TPRV was launched in 2017 with around $ 400 million from Harvard Management Co, where CIOs Graig Fantuzzi and Michele Toscani were portfolio managers and had worked together for 8 years.

The company is considering its next steps, which could include raising capital or joining a larger platform company, Toscani said.

This is the second Harvard-linked fund to close recently. In May 2019, former Harvard portfolio manager Marco Barrozo shut down his Cambridge Square Capital, which had started two years earlier and received $ 200 million from the university.

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