University of Maine System, Bangor, terminated hedge fund-of-funds manager Cube Capital, which managed $15 million for the system's $271 million managed investment pool of six endowment funds and $1.7 million for the system's $40 million defined benefit plan.
The system's investment committee voted May 1 to redeem its investments in Cube Capital's Global Multi-Strategy Fund, said Tracy Elliott, director of finance and controller, in an e-mail.
Investment consultant NEPC had recommended the redemption. Cube Capital recently reported withdrawals of more than $400 million in assets — out of its previous total of $1 billion — from high-net-worth and family office clients, said NEPC in a client memo. The memo said this “activity threatens the financial viability of the firm.”
Ms. Elliott said the committee will interview two managers at its May 27 meeting to potentially replace Cube. She declined to name the firms.
