Hedge Funds

Market rout puts DKR model under fire

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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,