Facing returns in the low single digits, the University of Missouri System in the summer of 2005 pulled out of DKR Capital, citing its view of a steady deterioration in the firm's capabilities during the previous 12 months.
Since then, however, DKR's performance has greatly improved. DKR International Relative Value Fund, a multistrategy portfolio allocated to nine DKR funds, acts as a fair proxy to analyze firmwide performance. That fund did have a disappointing year in 2005, up just 1.31% at yearend. But this year, the portfolio has performed in line with its multistrategy peers: It has gained 7.74%