A currency trader counts US 100-dollar notes in Tehran, Iran. (Photographer: Ali Mohammadi/Bloomberg)

Harvard-Linked Cambridge Square Hedge Fund Set to Shut Down

(Bloomberg) -- Cambridge Square Capital, a Boston-based hedge fund that has managed money for Harvard University, is shutting down after two years, according to a person familiar with the matter.

The firm had about $1.3 billion of regulatory assets under management as of December 2018, according to a U.S. Securities and Exchange Commission filing. That sum includes leverage. Harvard invested about $200 million with the firm.

Marco Barrozo, a former portfolio manager at Harvard Management Co., founded Cambridge Square in 2017 and served as its chief investment officer. Apoorva Koticha, a former fixed-income portfolio manager at Harvard’s endowment, was hired as chief executive officer.

Cambridge Square lost about 2.5% before fees in its first year of trading in 2017 and was up about 2% last year, the person said.

The Wall Street Journal reported the shutdown plans earlier.

Barrozo left Harvard Management in 2015. He invested in government bonds and interest rate swaps and was among the highest paid there in some years, for instance making $4.8 million in 2013.

Harvard invested with Cambridge Square after the university hired a new chief for its endowment in 2016 and he expanded the school’s external hedge fund portfolio, doubling the allocation to about $13 billion in two years, Bloomberg previously reported.

©2019 Bloomberg L.P.