Makena Offers More Liquid Hedge Fund

Mar 25 2011 | 1:04pm ET

Makena Capital Management, bowing to the needs of its most important investors, has launched a new hedge fund with easier redemption terms than offered by its five-year-old flagship.

The Menlo Park, Calif.-based firm said its new Liquid Endowment Fund will allow clients to get one-third of their money out within a quarter, and all of it within two years, by avoiding illiquid investments. The firm's main fund has a two-year lockup and redemption terms that could keep some of a client's money tied up for eight years.

"The big driver for this portfolio was that our clients were coming to us and wanted something that allowed for more flexibility," chief investment officer Eric Upin told Reuters. Makena, founded by former Stanford University endowment chief Michael McCaffery, has a long roster of college and university endowment clients.

"These type of clients have very long time horizons but they also face liabilities," Upin explained.

The new fund has already attracted $300 million, both from existing and new investors. Makena manages some $13 billion overall; it was the largest-ever hedge fund launch, with $7 billion, at the time of its debut.


In Depth

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

Securities and Exchange Commission Chair Mary Jo White will step down as chair of the nation’s Wall Street overseer in January, setting the stage for a potential conservative shift in the regulator’s leadership under the incoming Donald Trump administration.