The FT reports today that Jack Meyer, former manager of Harvardâ€™s $25 billion plus endowment, has raised more than $5 billion for his new hedge fund, Convexity Capital. This represents the most successful launch in hedge fund history. Does this mean the talk of the decline of hedge funds was overblown? Perhaps not. Meyer is â€œarguably the best hedge-fund manager of the past 15 years while at Harvard,â€? so its not surprising he can attract a lot of money. Additionally, some say Convexity really is not a hedge fund because it will employ a fixed income strategy. Also, Convexity will not be charging the hedge fund standard â€œ2 & 20â€?â€”2% management fee on all assets, plus 20% of the profits. Instead, it will charge a 1.25% management fee plus 20% of the profits above the benchmark indexâ€™s return.
Record Hedge Fund Launch
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December 1, 2006
[…] TRUTH ON THE MARKET Record Hedge Fund Launch of Harvard s $25 billion plus endowment, has raised more than $5 billion for his new hedge fund Professor Bainbridge; Security Dilemmas; Sox First; The Bogle Blog; The Fire of Genius; the quant; The Right […]Loading...
February 3, 2006
[…] Truth on the Market notes that the hedge fund boom is not over for high profile managers as Jack Meyer, former head of Harvard’s endowment, has been able to raise a record amount for his new hedge fund. […]