Senior DUMAC executive plans to start his own hedge fund
The head of the private capital team at Duke University’s $28.6 billion endowment is considering leaving to start his own hedge fund, three sources have confirmed.
Mark Corigliano, who has worked at DUMAC for more than eight years, is marketing a deck to potential sponsors for a long/short energy fund called Stealth Capital.
The fund would invest in listed stocks, MLPs and “anything related to energy”, according to a source who has seen the document. Private investments will also be included in the portfolio, the three sources said.
The decision to raise capital comes at a difficult time in the market, as investors slow their once frenetic pace of committing capital. At the same time, however, there has been an increase in the desire for energy and hedge fund investments.
“He’s trying to generate interest,” the source said. “He will struggle in endowments and foundations. He will have to turn to family offices to raise capital.
According to two of the sources, Corigliano is still determining if he will leave DUMAC. The decision depends on its ability to line up investors for the new fund. Corigliano did not respond to emails and a LinkedIn message seeking comment on his plans.
Predicting whether it will be able to raise capital is not easy. As the first source noted, the environment for raising an initial fund is “difficult”. But Corigliano is not a rookie.
“He was a hedge fund manager before DUMAC,” the second source said. “He’s going back to his roots.
Corigliano, along with other partners, previously ran a company called Belltower Advisors from 2009 to 2012, investing in energy, metals, industrials and related commodities stocks. According to a form 990Howard Hughes Medical Institute was among the investors in the company.
The fund closed in 2012 when “a large client…decided to reallocate”, Corigliano said North Carolina triangular business diary This year.
Prior to founding Belltower, Corigliano spent four years as a portfolio manager for Proxima Alfa Investments, a joint venture between Vega Asset Management and BBVA of Madrid, Spain. There, according to his LinkedIn profile, he managed a long/short portfolio of natural resource stocks. Prior to his time in hedge funds, Corigliano spent four years as an analyst for DUMAC.
Despite Corigliano’s pedigree, the energy market is complicated for investors, especially those in DUMAC’s peer endowment and foundations. “Endowments don’t want to do oil and gas,” the first source said. “I think he’s going to have opportunities, though.”
As the second source noted, allocators have recently changed their minds about fossil fuels, given the rebound in energy amid the market rout. They pointed out that a top endowment that has announced its intention to divest from fossil fuels has not only reversed course, but is now “so aggressive” that it is pushing others to back out of deals.