WEST PALM BEACH, FL (HEDGECO.NET) – Jeff Larson, a foreign equity manager for the Harvard Management Corp, is departing the firm to start his own hedge fund, according to published reports. His newfirm, Sowood Capital Management will be dedicated to hedge fund management as well as commodity futures management, according to the statement. Harvard Management Corp manages the Harvard Universityendowment portfolio, which is currently valued at US$19.3 billion.
While at Harvard, Larson earned about US$16.5 million per year, in salaries and other compensations, and is a well-respected fund manager; he takes with him 14 of Harvard employees to work for his new firm. The report also stated that Larson was given about US$700 million seed money to manage for the Harvard Endowment Scheme. Larson�s Sowood Alpha Fund, gets $500 million investment from while the commodities fund was seeded with a $200 million investment. In his statement Larson said, �Hopefully, the investment Harvard makes with me will help performance and make up for a lack of active management in foreign equities.�
Larson�s boss, HMC President Jack Meyer, said Larson was among his best performing managers, and according to him, Larson�s fund management portfolio, the foreign equity fund was up 15.3 percent a year, compared to the benchmark of 3.7 percent. Meyer commented over the departure of Larson, �It is a very strong indicator we are not paying our managers over the market.� Meyer said.
Jack Meyer also praised Larson, whose 12-and-a-half years at HMC have led to one of the most successful periods for the Harvard endowment Scheme. Meyer added. �He�s consistently outperformed his benchmark, and he will be missed.� Larson is the fifth Harvard fund manager in six years to leave HMC to form a new fund, according to Meyer.
Paul Oranika
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