Tuesday, 24 May 2016
Last updated 18 hours ago
Jan 23 2013 | 10:38am ET
Morgan Creek Capital Management founder Mark Yusko has left the fund of hedge funds joint-venture he set up a decade ago.
Yusko quit as chief investment officer of the $3.5 billion Endowment Fund due to differences with Salient Partners, which handles Endowment's marketing, he said in a letter to Morgan Creek clients. His exit comes just a few months after Endowment gated returns following more than $1 billion in redemptions last year. Those restrictions will be lifted on March 31.
"After nearly a decade of working with our venture partner in Texas, we found ourselves differing on material aspects of how to best run an Endowment portfolio and run the business, so we decided that a change was appropriate," Yusko wrote.
Yusko set up the Endowment Fund with Salient in 2003, while he was still leading the University of North Carolina at Chapel Hill's endowment. The fund invests with some of the most prominent hedge funds in the industry.
In its own letter to investors, Endowment Advisers wrote that "a meaningful number of investors in the fund have lost confidence in Mr. Yusko's ability to deliver results consistent with expectations and we believe that a change is warranted." Endowment said that the fund has suffered disappointing returns recently.
Salient CIO Lee Patridge, a former deputy CIO of the Teachers Retirement System of Texas, was named Endowment Fund's new investment chief.