Photographer: Maddie Meyer / Getty Images
Photographer: Maddie Meyer / Getty Images
Harvard TPRV Capital closes its hedge fund after investors withdraw their money.
After three and a half years, “we are winding down the fund and returning any remaining capital to our investors,” the company wrote in a letter to customers Friday.
Institutional investors have redeemed either because of disappointment with the fund’s performance or because they reallocated their cash from fixed income relative value or volatility strategies, Chief Operating Officer Luca Toscani said in an interview.
“Unfortunately, the combination of the two was deadly,” he said.
The company, which had peak net worth of $ 820 million at the end of 2019, saw that drop to $ 570 million in August 2020 and $ 233 million in February. TPRV’s fund lost 2.8% in 2020 and was roughly level in the first two months of this year, according to another document.
A tough 2020
TPRV has been struggling to make money since 2019
Source: Investor Documents
Last year brought “ one of the biggest challenges ” that the fund’s chief investment officers had seen in their professional lives, as the relative value trades associated with shorting on the volatility of the S&P 500 index went wrong losses. said at the time.
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TPRV launched in 2017 with approximately $ 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 may include raising capital or joining a larger platform company, Toscani said.
This is the second fund recently associated with Harvard and Shutter. In May 2019, former Harvard portfolio manager Marco Barrozo closed its Cambridge Square Capital, which had started two years earlier and received $ 200 million from the university.