Ex-Harvard Money Manager Feels Sub-Prime Heat

Jul 27 2007 | 2:02pm ET

Managing Harvard University’s money apparently doesn’t necessarily make you smart enough to dodge the sub-prime shrapnel.

Sowood Capital Management—founded by former Harvard Management Co. money manager Jeffrey Larson—is down 10% year-to-date due to big bond losses over the last two months, the Wall Street Journal reports.

Unlike other hedge funds burned by the credit crisis, Boston-based Sowood seems to be in good shape. The firm, which Larson set up after the end of his extremely successful stint at Harvard in 2004, has been able to meet its margin calls and does not face any redemptions until the end of 2008. It is in no danger of shutting down, the Journal reports.

Still, the fund, which trades both stocks and bonds, has sold some positions to raise cash for margin calls, including positions in merger-related shares.


In Depth

Steinbrugge: Will Hedge Funds Help or Hurt During the Next Market Correction?

Sep 7 2016 | 11:55pm ET

Most investors have become accustomed to quick rebounds when markets correct, but...

Lifestyle

Quattrex Sports AG Debuts Soccer-Focused UCITS Fund

Sep 9 2016 | 9:54pm ET

Innovative alternative investment company Quattrex Sports has unveiled a new UCITS...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...