It was just a few days ago that Art Samberg shocked the investment world saying he was shutting down Pequot Capital. Now another big name fund is closing its doors. James Pallotta will wind down his Raptor Global Funds which was spun out of Tudor Investment at the end of last year with $1.5 billion in assets after 2008 losses of 20% and big investor withdrawals. He’ll start returning money to investors next month. According to Bloomberg, after taking off a few months off, he’ll apparently develop a new investment strategy. Hmmmmm. Is it our imagination, or does it sound like a case of another fund manager escaping a high water mark to restart the fee meter?
“In recent years, I have conveyed my skepticism regarding the sustainability of certain aspects of the industry’s structure and short-term focus,” Pallotta, 51, said in the letter, a copy of which was obtained by Bloomberg News.
He spun off with about $1.5 billion after losses of about 20 percent and client withdrawals last year. His Boston-based firm, Raptor Capital Management LP, said it was halting investor withdrawals.
The fund has mainly held cash this year. Investors will receive about 75 percent of their money by early next month and an in-kind distribution of a pro rata interest in the Raptor Private Portfolio, which accounts for about 15 percent of clients’ investments. Remaining money will be returned “as soon as is practicable,” Pallotta wrote.
James Pallotta to Shut Down Raptor Global Hedge Fund – Bloomberg
Tags: closing the doors, Fees, Hedge funds, James Pallotta, Paul Tudor Jones, Raptor, Tudor Investment
