TPRV backed by Harvard to Unwind Hedge Fund, returned out of cash

Photographer: Maddie Meyer / Getty Images

With the support of Harvard TPRV Capital closes its hedge fund after investors have cash.

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

Institutional investors have changed either because of disappointment with the fund’s performance or because they reallocated its cash out of 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 a maximum of $ 820 million in assets at the end of 2019, saw it sink to 570 million by August 2020 and 233 million by February. The TPRV fund lost 2.8% in 2020 and was virtually flat during the first two months of this year, according to another document.

Last year was “one of the biggest challenges” the fund’s investment managers had seen in their professional lives, as relative value trading related to the volatility of the S&P 500 index deteriorated and cause heavy losses. he said then.

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TPRV was launched in 2017 with about $ 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 fund that has been linked to Harvard recently. In May 2019, former Harvard portfolio manager Marco Barrozo it closed its capital of Cambridge Square, which had begun two years earlier and received $ 200 million from the university.