Cornell Endowment Head To Launch $150 Million Hedge Fund

May 13 2010 | 3:33am ET

The outgoing head of Cornell University’s endowment plans to apply what he’s learned as an institutional investor to running a hedge fund.

Cornell University and Cayuga LakeCornell University and Cayuga LakeJames Walsh, who will leave the Ivy League school at the end of June, will launch Cayuga Capital Partners the following month with $150 million. The London-based firm aims to appeal to institutions by spreading out its fees over a three-year period.

“Having been an institutional investor for a number of years, we thought about what we would want in terms of terms,” Walsh told Bloomberg News. “We’re trying to align ourselves with investors.”

The firm will charge 2% for management and 20% for performance. Investors will pay half of the fees in the first year, with the rest paid over the following two years.

Walsh worked at Hermes Pensions Management as head of strategy until joining Cornell in 2006. The Ithaca, N.Y., university boasts an endowment of $3.97 billion.

Cayuga will employ five when it launches in July. The fund will trade liquid global stocks and bonds.


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