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Mortgage crisis benefits hedge fund

By Muckety

August 28, 2007 at 4:10pm

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While other funds struggle through the mortgage crisis, a hedge fund founded by former Harvard Management Co. CEO Jack R. Meyer is flourishing.

Meyer and former Harvard colleagues run Convexity Capital Management, which makes trading bets that benefit from volatility. The fund, started last year, had disappointing early results. But recent market swings have brought a turnaround.

During his 15 years with Harvard, Meyer provided impressive gains for the university endowment. Harvard now profits again, having invested $500 million in Convexity. The university endowment reached $34.9 billion in the fiscal year ending June 30.

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 Read related stories: Business · Mortgage · Subprime  

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