Purdue Krannert students launch hedge fund, offer portfolio management

Published: March 24, 2016

WEST LAFAYETTE, Ind. – Five Purdue University students have launched an investment startup to protect, manage and grow client portfolios, and they have already reached investment interest in the seven-figure range.

These Krannert School of Management students began planning their equity strategy hedge fund in early 2014 and officially founded it as Gold Sail Capital in November 2015. The group anticipates that the fund will reach an eight-figure range by this summer.

"Similar private investment funds have developed out of Wharton and Harvard, and this is something we are more than ready to develop as students in Krannert," said Matt Garofalo, a finance and management senior. "We spent the past two years planning every detail of this venture and have talked and worked with numerous industry experts and investors. If things continue to progress as they have, we anticipate that we can raise at least $10 million, but our goal is $25 million by the end of this semester."

The other student entrepreneurs of Gold Sail Capital include Paul Griggs, an economics and finance senior who also is a former kicker for the Purdue football team; Connor Knowlton, a finance sophomore who has already taken his Series 7, 63, and 65 financial examinations; Stephen Toyra, a graduate student and former guard for the Purdue basketball team with his own real estate firm; and Matthew Garatoni, a sophomore studying management and entrepreneurship.

"A typical hedge fund isn't managed by 20-somethings, but we are not the typical 20-somethings. We are more than ready to launch our fund and we have highly experienced financial experts serving as advisers to support us," Griggs said.

Huseyin Gulen, an associate professor in Krannert, is one of the advisers for Gold Sail Capital.

"While not common for college students to create a hedge fund, it also is not unheard of and I believe that this group of bright students have the right skills and connections to establish Gold Sail Capital," Gulen said. "I am pleased to provide guidance for them, but ultimately it will be their venture and their success."

Griggs said the student entrepreneurs are already each dedicating more than 40 hours a week to Gold Sail Capital.

"We intend to further develop our client base and grow the capital, and will continue to dedicate ourselves full time to this endeavor both before and after graduation," he said. "Our long-term goal is to make investments in people, philanthropy, and new technologies. There is a lot happening at Purdue in innovation and commercialization and we believe that this is an untapped market that we can incubate. We want to help the global Purdue community and showcase what our university has to offer."

About Gold Sail Capital

Gold Sail Capital strives to provide the highest possible risk-adjusted returns for its clients through even the most turbulent of markets. The company achieves this by adjusting strategies and tailoring them to fit both the specific conditions of the market and the specific goals of the fund. 

Media contact: Cynthia Sequin, 765-588-3340, casequin@prf.org

Sources: Matt Garofalo, matt.garofalo@goldsailcapital.com

Paul Griggs, paul.griggs@goldsailcapital.com