Sounds like it’s all about the fees: Add another under water hedge fund manager, George Noble, to the list of those who’ve announced that they’re shutting their doors today. Like Jim Pallotta, he’ll be rethinking his strategy and hopes to raise more outside money in the near future, according to the WSJ. Translation: High water mark? No problem! Just open a new fund and restart that fee meter!
George Noble, a former mutual-fund manager who controls some $550 million across two funds named Gyrfalcon, intends to refund clients this month. He described his 2009 performance in a letter to investors Tuesday as “the most professionally disappointing and personally frustrating of my entire career.”….
The moves also highlight the economics of hedge funds, where managers who have lost money have a strong incentive to wind down, return remaining cash and try to start over. Once funds start losing money, managers generally must make back losses before they can resume collecting big performance fees….
Mr. Noble, 52, and his partners plan to rethink their investment strategy and hope to raise outside money again in the next several months, people familiar with the firm say. “Whatever the reasons for our poor performance, the numbers speak for themselves and are simply unacceptable,” wrote Mr. Noble…..
Two Money Managers Will Close Large Funds – Wall Street Journal
Tags: closing the doors, Fees, Gyrfalcon, Hedge funds
