The hedge fund firm started by former Harvard endowment chief Jack Meyer is shutting down, according to communication sent Thursday to stakeholders.
Convexity Capital Management had undergone serious capital redemptions for a number of years, but a staff member foremost blamed markets for the closure. The Boston-based firm managed $14 billion at the start of 2014, $8.2 billion two years later, and $4.3 billion at the end of 2016, Institutional Investor previously reported.
[II Deep Dive: Jack Meyer’s Convexity Continues to Suffer Asset Drain]
On Thursday, a Convexity employee contacted one stakeholder to inform them that the firm was going out of business. The staff member attributed the decision to declining volatility, particularly in the first quarter of 2019, which led to redemptions and reduced potential for new capital inflows.
The employee said that Convexity had expected the market to begin to act rationally, but that it had not.
The portfolio has sufficient liquidity to wind down quickly at an acceptable price, according to the communication, which II reviewed.
Meyer did not immediately respond to a voicemail seeking comment.