CHAPEL HILL, N.C. — Mark W. Yusko, chief investment officer at the University of North Carolina's UNC Management Co., is moonlighting as a hedge fund of funds manager.
For almost a year, Mr. Yusko has been part owner, consultant and portfolio manager of The Endowment Fund, a multistrategy fund of funds that invests in 50 money managers in nine asset classes. It has $180 million under management, 95% of which is from individuals, Mr. Yusko said.
The co-owners of the hedge fund are the four founders and principals of Salient Partners LP, Houston, an ultra-high-net-worth asset manager.
Salient handles the day-to-day operations from back office to manager due diligence and client service.
Observers note the potential conflict of interest faced by the CIO of a $1.2 billion endowment who is using the same strategy to manage assets for another entity in which he is part owner.
But according to Mr. Yusko, his employment agreement with the Chapel Hill, N.C., university permits him to spend some of his time as a consultant, just as most universities do for their professors.