(Bloomberg) -- Harvard-backed TPRV Capital is shutting down its hedge fund after investors pulled their cash.

After three-and-a-half years, “we are unwinding the fund and returning all remaining capital to our investors,” the firm wrote in a letter to clients Friday.

Institutional investors have been redeeming either due to disappointment over the fund’s performance or because they were reallocating their cash away from fixed-income relative value or volatility strategies, Chief Operating Officer Luca Toscani said in an interview.

“Unfortunately the combo of the two was lethal,” he said.

The firm, which had peak assets of $820 million at the end of 2019, saw that plunge to $570 million by August 2020, and $233 million by this February. TPRV’s fund lost 2.8% in 2020, and was about flat in the first two months of this year, according to another document.

Last year brought “one of the biggest challenges” the fund’s chief investment officers had seen in their professional lives as relative value trades linked to shorting S&P 500 index volatility went awry and led to sharp losses, the firm said at the time.

TPRV launched in 2017 with about $400 million from Harvard Management Co, where CIOs Graig Fantuzzi and Michele Toscani were portfolio managers and had worked together for 8 years.

The firm is considering its next steps, which could include raising capital or joining a larger platform firm, Toscani said.

This is the second fund with ties to Harvard to shutter recently. In May 2019, former Harvard portfolio manager Marco Barrozo closed his Cambridge Square Capital, which had started two years prior and received $200 million from the university.

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