University system pulls money, citing "uncertainty" and
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,