Market rout puts DKR model under fire

Fri Jul 1, 2005

University system pulls money, citing "uncertainty" and "turmoil"

Like many others in academia, the University of Missouri System decided to dip its toe into the alternative-investment universe, committing $21.2 million to hedge fund DKR Capital in 2002. But less than three years later, the UMSystem decided to pull the plug.

Shirley DeJarnette, treasurer of the UMSystem, which operates universities throughout the state of Missouri, points to the "uncertainty" and "turmoil" facing DKR as reasons for taking what is now $32.5 million in pension and endowment money from the Stamford, Conn. firm.

"Although [DKR's] performance has been acceptable, there has been a steady deterioration in the firm's capabilities during the last 12 months," stated a May presentation to UMSystem's board of curators, which then voted to sever the relationship. The university group singled out DKR's loss of two trading teams, the disappointing performance of several new ones and, discussing...

ISSN: 2151-1845 / CDC10004H

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