Three money managers are planning to leave Harvard University’s struggling endowment to start their own hedge funds as the organization cuts staff and outsources investments. Portfolio managers Michele Toscani and Graig Fantuzzi, who each focus on fixed income at Harvard Management Co., are teaming up to start a hedge fund, according to people with knowledge of the matter. Sanjiv Bhatia, a portfolio manager who focuses on emerging market stocks at the $37.5 billion fund, is also setting up his own shop, said one of the people, who asked not to be named because the information is private. The three are among...